Christmas deliveries at risk as online grocer Farmdrop goes bust
Christmas deliveries for thousands of customers are at risk after Farmdrop, the upmarket grocery website, stopped trading.
The company has told its reported 10,000 customers on Thursday that it is closing permanently.
Deliveries have now stopped. Farmdrop’s closure risks disrupting festivities as many customers are likely to have ordered their Christmas dinners through the website.
The business has logged a notice of intention to appoint administrators at the High Court, typically a precursor to an insolvency process, after it failed to raise emergency cash.
In a message to customers, it said: “It has become apparent that we have exhausted all possible options. It is with very heavy hearts that we must let you know that we will no longer be able to serve our cherished customers.”
Christmas offers, including its selection of “Turkey And All The Trimmings”, its £5.95 cranberry and orange sauce and £8.99 organic mince pies, are still being advertised on the Farmdrop website.
One customer with a pending order has been told to “get in touch with your bank or card supplier to initiate a chargeback”, according to the Grocer.
Meanwhile, Kate Clark, the founder of ice-cream supplier Luscious, wrote on LinkedIn that she was “sad but not surprised” to hear of Farmdrop’s demise, before claiming that it owed money to her company.
Founded in 2012 by Ben Pugh, a former stockbroker at Morgan Stanley, Farmdrop had been backed by high-profile investors including Atomico, the London VC fund founded by Skype co-founder Niklas Zennström, and Zoopla founder Alex Chesterman.
The firm, which also counts the Duke of Westminster among its investors, sourced premium products from hundreds of farmers and small suppliers to sell in the London area.
It posted sales of £11.8m in its most recent set of accounts, up from £5.4 in 2019, and narrowed its lossed from £11m to £9m.
Farmdrop was contacted for comment.