The first company backed by Steven Bartlett on Dragons’ Den has been rescued after collapsing into administration – but now the celebrity entrepreneur will not see a return on his £150,000.
Online artisan cheese retailer Cheesegeek has been bought by the Albex Group for an undisclosed sum.
Bartlett, who is a regular feature on the popular BBC show, stumped up £150,000 for a five per cent stake in the London-based company in 2021.
The deal was shown in an episode airing in 2022, which marked Bartlett’s first Dragons’ Den appearance.
Cheesegeek’s founder Edward Hancock was told at the time that Bartlett was looking to recoup his money within two years.
The company had been valued at £3million.
Bartlett held 16,427 shares in the business through his private equity firm, Catena Capital, according to documents available on Companies House, City AM reports.
But the cheese subscription service, which began in 2017, ran into financial trouble with combined losses of almost £3m on total revenues in excess of £4.5m, The Grocer reported.
Cheesegeek, the first company backed by Steven Bartlett on Dragons’ Den, has been rescued after collapsing into administration – but the celebrity entrepreneur will not see a return on his £150,000
Bartlett, who is a regular feature on the popular BBC show, stumped up £150,000 for a five per cent stake in the London-based company in an episode aired in 2022
Food ingredients business Albex agreed to buy the company in a pre-pack deal – which has saved Cheesegeek’s fortunes – but Bartlett and other backers will not see a return.
Hancock told the retail publication: ‘We have had some incredible highs and lows over those years, as any founder will attest to as they try and scale a business from ground zero, and I am incredibly grateful to all of our shareholders who have supported that vision over the years.
‘Our acquisition means we can continue this mission, with minimum disruption to any of our amazing suppliers, or customers, albeit down a slightly different path than we might have imagined.
‘But most importantly, it means we are now going to be in the strongest possible position to deliver on the goal that I began with back in 2017.’
In 2023, Cheesegeek raised £421,000 during a Crowdcube campaign to raise funds for an expansion of the business into physical retail.
And last year, a new range of artisan cheeses were launched in Sainsbury’s.
But despite these efforts, the business ran out of funds.
Albex director Andrew Dalglish said: ‘Cheesegeek’s mission to support local artisan cheesemakers and make great cheese accessible is an important one.
The deal was shown in an episode airing in 2022, which marked Bartlett’s first ever Dragons’ Den appearance
Since joining the show, Bartlett – the youngest Dragon to join the panel – has made more than 20 investments
Richard Simpson and Edward Hancock of Cheesegeek appeared on the Dragons’ Den episode
The cheese subscription service, which began in 2017, ran into financial trouble before being bought out by Albex
‘We’re delighted to be able to support it.
‘As a family company we always take a long-term view and are committed to fully supporting Cheesegeek. Our funding gives them the stability needed to continue operating and more.
‘It will allow them to achieve their full potential and do so in partnership with the artisans who bring much needed diversity and craftsmanship to the UK’s cheese industry.’
The same team will remain in place, led by founder Edward Hancock.
Since joining the show, Bartlett – the youngest Dragon to join the panel – has made more than 20 investments.
Cheesegeek represented his second largest investment after the £250,000 he ploughed into fine jewellery brand Kimai, in return for 3 per cent of the business, shown in series 21.
