Karhoo INC. (FC032752): administration
- Status
- Administration ended
- Administration began
- 2016-11-21
- Administrators
- Paul Steven Cooper, Paul Robert Appleton
- Administrators' firm
- BDO
- Incorporated
- 2014-12-08
- Location
- Wilmington
Why it went into administration
- Cash flow / liquidity pressure
- Management failings / irregularities
- Competition / price pressure
- Funding withdrawn / unable to refinance
- HMRC / tax arrears
- Property / lease costs
- Loss of key people
From the administrators' statement
Karhoo encountered a number of difficulties, which in combination led to the failure of the Group One of the key strategic decisions made by senior management was to build the business based on the concept of first mover advantage The management decided to build scale and size very quickly Global presence and scalability were believed to be essential to success as opposed to starting off with a more geographically targeted approach to prove the concept first, launch and scale later This latter approach was deemed to be secondary to achieving global first mover advantage
One of the key determinants to success was the technology offering The technology capability was not at the level required to launch a seamless product to the client base The Group went through a number of iterations of in house technology teams Most recently the core technology
Karhoo Inc — In Administration Joint Administrators’ Report and Proposals (Para 49)
Administrators' statement of proposals (2017-01-26) · Companies House register