Legal Beagles goes bust!

Letter1

What a success this has been! Three years ago, the Beagles launched their new money making venture to the world with a fanfare. LB Compare was set to be the definitive comparison site for legal services, amongst other things. They must have expected their forum user base to feed clients to advertisers, nothing wrong with that in principle, but where was the money in that? The idea was to get law firms to pay for a featured advert on their website, which would also allow them to publish fixed fee services. It was never clear whether there would also be some referring going on in the background. While law firms and lawyers are not allowed to tout for business themselves, there is nothing wrong with someone sending a forum poster a PM recommending a lawyer or firm. In fact, this had been happening all along, albeit unofficially.

Whatever the arrangement, it wasn’t the resounding success they expected and the operation was later rebranded as “Just Beagle”. Clearly this didn’t work any better, as can be seen from the attached correspondence. The documents speak for themselves, and their shares appear to have less value than a roll of toilet paper, if the attached letters are anything to go by.

One letter starts with the following:

I am sorry to have to write to you in this manner but unfortunately the company is in a situation whereby this month will be the last that we can pay wages due to our investment funding being exhausted.

We have a further letter saying:

In regard to your question about the company buying back your shares, since we have no money to pay salaries we do not have any to purchase shares. In any event that would not be the process, as provided for in the Articles of Association which requires you to offer the shares to existing shareholders to purchase. Given our trading position it would be unlikely that there is any current value to them.

Says it all really! One has to wonder where all the investor money went.

 

Letter from FB

6 Comments

  1. Dignity says:

    I remember the days when the Beagles were supposed to be worth £35m.

    In reality, they were worth more like £35.

    Had they been worth millions, wouldn’t King Old Fart, Princess Kathryn and Princess Shazza have sold? Of course they would have!

    Pamela Austen seems to have taken some duties from Old Fart. My understanding is that she’s legally qualified but doesn’t understand the basics of the employment law.

    Or is this all pure ignorance and arrogance? Just because you’re Legal Beagles doesn’t mean you’re above the law.

  2. Interested Party says:

    I wish I could say I feel sorry for them, sadly I can’t as they have obviously mismanaged the funds, they can’t blame ignorance, inexperience or plain stupidity because that would go against their whole philosophy running the site, so the only answer will be greed, self centredness, on what they turned it into and that was nothing else than a vanity project.
    Putting it into words they will understand, they have wasted good investments, the goodwill of the people that worked on the site, plus the dedication of others who kept it going whilst they sat back and took the kudos.
    The people I feel sorry for are those who are left with nothing to show for it, those who worked long and hard on there over the years, those who have emptied their bank accounts to invest in a business that should have been worth millions by now.
    Shame on them for letting this happen, I just hope that someone takes the reigns and has them investigated.

  3. Revenge says:

    I have read their accounts from Companies house, what surprises me is that they lost £630k wow wow wow, how on earth did they loose that sort of money. I am very concerned about this, for this I will need addresses and Berko would be a good start.

  4. Annoyed says:

    I wonder what will happen to the forum when the funds run out. It must cost money to run it and surely if the company is insolvent it would be criminal to continue. Also what will Shaz et al do for income or have they given themselves big bonuses .

    How can they lose so much money in a year when they appear to have done SFA., this must be criminal mismanagement

    I also noticed at the last end of year accounts there were outstanding loans to the directors paying interest, what was it base +2% wow that is better than you would get in the high st, a scam?

  5. Dignity says:

    Furthermore, I can recall Celame being marketed as an ethical, consumer-friendly company. They promised to put their etchics first and fight for consumer rights.

    Quite pathetically, King Old Fart reported a rival forum to the FCA in order to get it closed down. Whilst he certainly managed to stir things up, his attempt failed.

    He may soon be under investigations himself. I’ve always said that he is the true owner of the company, perhaps along with some investors who have invested in the operations in good faith.

  6. revenge says:

    Dignity, who is King Old Fart (is it Berko) he had supported LB with lots of money in the beginning and some more as time went on. So now he may be under scrutiny ohhh dear. The girls have flushed him out of the dough. Went on expensive holiday to Las Vegas and I am sure they have drawn out loads of cash for themselves. I am sure if Pamela did her sums right on Kate she puts in very little time, but bet she will not approach her on that.

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