Growth Street completes wind-down

The liquidators of closed peer-to-peer lending platform Growth Street have delivered their final account, signalling that “the company’s affairs are fully wound up”.

Growth Street announced in July 2020 that it was entering a solvent wind-down once its “resolution event” – the process of getting its loanbook repaid – was complete.

It said at the time that it had failed to secure the funding needed to sustain the business, blaming challenging economic conditions amid the pandemic.

A special resolution to wind up the company was then passed on 3 June 2021.

Mercer & Hole has issued a final report covering the full period of the liquidation process, from 3 June 2021 to 24 January 2023, which was filed with Companies House.

It said that it had recovered £1,782 of cash in the bank and had distributed £539.29 to the sole shareholder on 3 October 2022, representing £0.02p per £1 share.

During the period, the administrators said they had incurred total time costs of £30,793.50, which represents 172.50 hours at an average cost of £178.51 per hour.

The costs of the liquidation will be met by Growth Street Holdings, the ultimate parent of the group, Mercer & Hole said. £22,000 of the total costs have already been paid.

Last year, Growth Street announced that its retail investors would receive their balances back in full as it prepared to close.

Following the announcement, stakeholder Chrysalis Investments said it was prepared to take a lower wind-down value for its holding, as “ensuring no losses for retail customers was the responsible course of action”.

Chrysalis Investments had made a £12.6m investment in Growth Street in 2019.