"We worked hard to find solutions which would allow us to emerge from the Resolution Event a stronger, more competitive business but unfortunately, we weren’t able to get there."
Peer-to-peer lender, Growth Street, has announced that it will effect a solvent wind down of the business once the Resolution Event is complete.
Last month, Growth Street announced plans to phase out its peer-to-peer investment structure and instead seek institutional debt funding to continue to serve SMEs across the UK.
However, the entire focus of the business will now be on supporting its borrowers to find alternative sources of finance while ensuring that funds are returned to its investors.
During the wind-down, Growth Street will retain a core team to ensure it proceeds effectively. Expected timeframes and quantity of repayments to investors will be unaffected by the wind-down.
Growth Street initiated its Resolution Event last month, recalling its current loan book from borrowers and reimbursing existing P2P investors.
Kim Goetzke, COO at Growth Street, said: “It is with deep regret that we have taken the decision to begin a solvent wind down of the business once the Resolution Event is complete. This is not a decision which we have taken lightly. We believe passionately in Growth Street as a business and we will make every effort to ensure that the impact to our investors and our borrowers is minimal. Our team will continue to work tirelessly to return funds to our investors.
“The onset of Covid-19 presented numerous challenges for our business. We worked hard to find solutions which would allow us to emerge from the Resolution Event a stronger, more competitive business but unfortunately, we weren’t able to get there.
“We assessed all of our realistic options, including having discussions with our shareholders and other institutions to find a solution that would enable us to build an economically viable business going forward whilst allowing us to offer a market leading proposition for our customers. Unfortunately, it wasn’t possible in the current environment to put together the package of equity investment and institutional funding necessary to continue the business.
A core team will remain with the business to effect a controlled, solvent wind down, supporting borrowers and investors and to realise value from its technology. To those leaving the business, we will help you in every way we can.”