Embattled CBD firm Love Hemp has collapsed after struggling to maintain its working capital position since the new year.
A notice on the brand’s website said Paul Cooper and Jamie Taylor of Begbies Traynor were appointed as joint administrators of Love Hemp Ltd on 9 February 2023.
“They are managing the affairs, business and property of the company,” the notice said. “The company will continue to trade whilst the joint administrators carry out their statutory duties.”
A Begbies spokeswoman told The Grocer that the firm was unable to provide more details about the collapse at this stage.
The company, which counts former world heavyweight boxing champion Anthony Joshua as a brand ambassador and shareholder, stocks its CBD products in Boots, Tesco, Holland & Barrett and Ocado.
It has been in trouble since last year when its shares were suspended from the Aquis Stock Exchange in May. The business was also fined by the exchange in August over a misleading fundraising announcement made earlier in the year.
In December, Love Hemp secured a £1.5m loan to pay off debts to its invoice finance provider, but the company also warned its working capital has been hit by slower than normal payments from retail customers and dwindling consumer confidence.
As a result, Love Hemp has been unable to file its 2021/22 financial accounts.
Last week, the company issued a statement on Aquis in response to claims made by former MD Philip Small about its financial affairs.
Love Hemp’s board said it intended to investigate the comments made but was “shocked” at the allegations.
“Love Hemp rigorously refutes all the comments made by Mr Small,” the statement added. “They are being thoroughly investigated by the company’s advisors, including Love Hemp’s legal team. However, until such investigation is completed, the board has no reason to believe any of these comments to be true.
“The company continues to make progress to formulate next steps, including financing options and will update the market accordingly.”
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