A DATA analytics firm established by a former boss of the original Fopp music chain has gone bust.
Peter Ellen, who was managing director of Fopp when the chain expanded rapidly around the UK in the early 2000s, saw his Big Data for Humans falter after “extenuating circumstances” led to the appointment of administrators.
The Edinburgh-based firm, whose software helps retailers and travel firms identify marketing opportunities through data analysis, had encountered cash flow problems because of a late payment of an invoice by a significant client.
Administrators Eileen Blackburn and Brian Milne, of accountancy firm French Duncan, also cited had a company structure which made it difficult to attract investment, the ill-health of a director, and wider economic slowdown and uncertainty.
Big Data for Humans, which Mr Ellen established with chief technology officer Steven Rose in 2014, had worked for clients including Tesco, 7-Eleven, Selfridges and Co, Cartier and Air Asia. It had four employees by the time the administrators were appointed on March 14. However, it is understood that staff numbers have gradually been wound down in recent months with the firm’s move to an out-sourcing model.
As recently as April 2017, Big Data for Humans directly employed 40 staff across its offices in Glasgow, Edinburgh and Singapore. Speaking to The Herald at the time, Mr Ellen said he hoped to increase the company’s headcount to 60 by the end of that year.
His confidence stemmed from the advances Big Data for Humans was making in Asia, following the opening of an office in Singapore, with the entrepreneur revealing the firm had just signed a major contract with the Philippines’ biggest convenience store group.
The deal would see the Manilla-based 7-Eleven operation use the data analysed by Big Data for Humans to enhance marketing across 2,000 stores.
Air Asia had in the prior year led £2 million investment round in Big Data for Humans, which led to its chief executive Tony Fernandes, owner of Queens Park Rangers, taking a seat on the board.
In a document filed at Companies House, the administrators outline the background and events leading up their appointment.
The administrators highlight the effects of the late payment of a six- figure invoice from one of the company’s biggest clients, and a major change in GDPR (general data protection regulation) legislation, which ultimately meant it needed to employ fewer people to process data.
An attempt was then made in 2018 to revise the firm’s strategy, take on further investment and appoint a new non-executive director in a bid to improve profits and cash flow. However, this was aborted when the proposed non-executive director voiced “concerns surrounding the company’s ability to deliver on the strategy,” the administrators said. “As a result, the directors felt that they could not in good faith move forward with the strategy, take on the non-executive director or accept the proposed investment.”
The administrators are now marketing the assets of the company, including its cloud-based marketing software.
Two European trademarks - Big Data for Humans and Bd4H – are up for sale, as are the copyright of web content, domain names and social media assets.
Ms Blackburn said: “The financial problems faced by this company were due to a number of circumstances including cash flow problems caused by the late payment of an invoice by a significant client; the economic slowdown and uncertainty due to the economy; a company structure that caused problems in accepting new investment; and ill-health with one of the directors who had to withdraw from the business for a significant time.
“The result was that the company fell behind with key bills as they arose, and its creditors lost patience. This was a strong company performing well among an excellent array of clients with a highly regarded range of products which we expect will be acquired by another company.”
Ms Blackburn added: “All insolvency is unfortunate but, in this case, there really were extenuating circumstances which led to the administration of this company.
“As these circumstances were unique to the company, I would expect a reasonably quick sale of its assets and a return for its creditors.”
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