CBD supplement firm Love Hemp has gone into administration for the second time in little over a year.
In a letter to employees seen by The Grocer, the firm’s administrators at Begbies Traynor warned of the possibility of redundancies.
They said: “Notwithstanding our efforts to preserve the business, it may be that redundancies will have to be made if there are insufficient funds with which to pay the workforce and/or there is no viable business to continue.”
They added that if redundancies were necessary, employees should seek government funds as it was unlikely there would be “sufficient company funds available for redundancy pay”.
Love Hemp – which counts former world heavyweight champion boxer Anthony Joshua among its shareholders – previously went into administration in February last year.
That administration resulted in the firm being delisted from the Aquis Stock Exchange, and subsequently sold to Portillion Capital.
Trading in the company’s shares was also suspended in May 2022 after an investigation by Aquis found the company had misled investors over its financial situation. It was subsequently fined £70,000 by Aquis.
In December 2022 the company secured a £1.5m loan to pay off debts to its invoice finance provider, but warned its working capital had been hit by slower payments from retail customers and dwindling consumer confidence.
In early 2023, Love Hemp issued a statement in response to claims made by former managing director Philip Small about its financial affairs.
The company said it refuted the claims but was willing to work with the Financial Conduct Authority, adding it had “no reason to believe any of these comments to be true”.
Love Hemp’s products include CBD oils, capsules and gummies. They are stocked in retailers including Boots, Tesco, Holland & Barrett and Ocado.
Portillion Capital has been approached for comment. Begbies Traynor declined to comment.
No comments yet