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Ve Interactive administrators may pursue bosses to raise cash

Ve Interactive's founders David Brown and Kathy Heslop  - Dylan Thomas
Ve Interactive's founders David Brown and Kathy Heslop - Dylan Thomas

Former bosses at the collapsed technology “unicorn” Ve Interactive may be pursued in the courts to retrieve funds owed to creditors.

Administrators are weighing up whether funds could be recovered from directors of the advertising technology company, which owes £77m to 94 creditors, a report reveals.

Ve Interactive was once seen as one of the UK’s hottest start-ups, and valued at up to £1.5bn, but never made a profit and went under in April.

Parts of the business were rescued in a buy-out that valued it at just £2m, but administrators are now trying to pick through its assets in order to recover sums owed to, among others, Arsenal Football Club and Ronnie Scott’s jazz club in Soho.

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A progress report filed last week showed that around £2.8m had been recovered so far, around £1.5m of which had been chewed up by administration costs.

Administrators Smith & Williamson are attempting to retrieve almost £2m in funds from Ve’s US operation, as well as more than £10m owed by “connected companies” – separate entities run by Ve’s former bosses including its founder David Brown.

However, the report also reveals that directors may be personally pursued. “Shortly after appointment, we made an initial assessment of whether there could be any matters that might lead to recoveries for the estate and what further investigations may be appropriate,” it said.

Arsenal Emirates stadium - Credit: Reuters
Money was owed to Arsenal Football Club, among other creditors Credit: Reuters

“Our investigations have revealed a number of areas which require further scrutiny. All and any submissions are strictly confidential and we are unable to disclose the existence or content of any reports made.”

Law firms Edward Coe and Druces have been appointed to advise on the matter and the report said claims would be brought “if required”.

The administrators have a £250,000 pot that was included as part of the buy-out of Ve, to support investigations and legal actions. However, it is unclear how much can be recovered.

Both Mr Brown, who was Ve’s chief executive until earlier this year, and Martin King, its former head of investor relations, have declared bankruptcy.

Earlier this month, a judge placed a freeze on their assets when Bank & Clients, a Ve Interactive creditor, sued the pair in a separate attempt to recover £2m in loans that had been personally guaranteed.

The administrators’ report did not reveal which former directors it might seek to recover funds from. Mr Brown, who is believed to be living in Spain, could not be reached for comment.

Ve’s technology was used to “nudge” online shoppers into following through on online purchases when they had placed an item in their basket but not completed the order.

The remnants of the company has been bought by a consortium of investors and renamed Ve Global, which has cut jobs in an attempt to turn a profit.

Around £40m was owed to a number of high net worth individuals, with £12.6m in unpaid bills to dozens of companies and £2.5m to HMRC.