Love Hemp bought out of Administration
Love Hemp has been bought out of administration by Portillion SPV1 Limited for an undisclosed sum.
A spokesperson for Love Hemp’s administrators Begbies Traynor told BusinessCann: “The Joint Administrators of Love Hemp Limited, Paul Cooper and Jamie Taylor of Begbies Traynor Group Plc, are delighted to announce that following the marketing and sales process run by their agents Williams & Partners, they have successfully sold the business to Portillion SPV1 Limited. As well as securing the future of the business, Portillion SPV1 Limited will be taking on all the existing employees.
Portillion’s Co-founder and CEO Kamran Sattar, understood to be a long time investor in Love Hemp, said: “Love Hemp is the market leading brand in the UK CBD space trusted by customers daily. I am pleased that my team and I have been able to secure the future of Love Hemp and can finally make Love Hemp the go-to brand globally.”
Earlier this week, BusinessCann was also informed that the company’s former Managing Director Philip Small had tabled a bid to purchase the assets of Love Hemp Ltd.
Mr Small said: “I have together with a consortium tabled a bid to purchase the assets of Love Hemp Ltd, as I believe I have the ability and the experience to turn around this business, having saved it from administration when I joined the business in 2021.”
“The offer will safeguard most of the jobs and give security once and for all to all who work at Love Hemp Ltd, the suppliers and the retailers, and Love Hemp Ltd will bounce back stronger than ever.”
After officially calling in administrators earlier this month, Love Hemp has now seen its shares withdrawn from the Aquis Stock Exchange, following months of suspension.
In a brief announcement on February 13, the collapsed CBD brand told investors: “Pursuant to Rule 5.2 of the AQSE Growth Market Rules Access, the company will be withdrawn from the AQSE Growth Market with effect from market close 13 February 2023.”
Days earlier, it provided a more detailed statement regarding its administration, pointing to a ‘notice of default’ for a secured debt facility which required an immediate repayment of £1.9m and was incurring daily interest.
It also pointed to ‘significant legacy issues’ impacting the day-to-day running of the business alongside a 37% drop in sales in Q2 2023 compared with the previous quarter.
“Additionally, the impact of statements in the media has hindered the Company’s efforts to secure the necessary funding and has had a profound impact on the business. The company has faced several obstacles with the recent bad press surrounding Mr Philip Small’s accusations.
“The company confirms that we still believe these to be false, purposely misleading and unfounded.”
