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Emoov collapse angry sellers threaten legal action

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Tue 02 Jul 2019

Emoov collapse angry sellers threaten legal action

Estate Agent Today has been contacted by an individual who says he is one of three former Emoov customers intending to take legal action.

Emoov under its former ownership went into administration at the end of 2018 after failing to secure promised funding.

At the time there was media speculation as to the timing of the administration following a crowdfunding raise earlier in 2018, and some debate about what would happen to customers of Emoov who were effectively left stranded after the company collapsed.

“While we acknowledge that sometimes businesses do not manage to deliver on their promises, in this case we believe that it is the equivalent of a fraud” claims the individual who contacted EAT.

He suggests there will be two legal actions; these would be filed against the former chief executive and founder of Emoov, Russell Quirk, and against other members of the board of the company prior to its collapse.

EAT understands that the three individuals registered as sellers with Emoov in November, and are looking for other vendors from around that time who have not received compensation. The three are all from the London area.

It is thought that liability for fees paid to Emoov prior to the collapse rests with Emoov Limited and its administrators, and/or the credit card provider; however this appears not to have yet been tested legally.

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In December 2018 The Times reported that some crowdfunding investors who staked money following a mid-2018 Emoov pitch on the platform Crowdcube were considering action.

There appears to have been no development on that front and the individual who contacted EAT is referring to lost vendor fees not wider company investment. 

In January this year Emoov was bought out of administration by PropTech start up Mashroom.