The financial collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) was preventable through proper financial management and strategic planning.
What measures could have prevented the company from going under?
What Went Wrong?
Uncontrolled Expansion
Huboo expanded its operations by opening numerous fulfillment centers without generating enough sustainable revenue.
The company expanded through investor funding instead of developing its business organically.
No Profitability Plan
The company obtained more than £118 million in funding yet it never achieved profitability.
The company operated with expenses exceeding revenue while lacking a defined solution to resolve this issue.
Failed Restructuring Attempts
The Company Voluntary Arrangement (CVA) process ended in December 2024 when it failed to succeed.
The rescue attempts failed to obtain necessary funding before the deadline.
Poor Communication with Clients
The company failed to notify its customers about its impending collapse.
Businesses that received advance notice about the company’s failure could have made provider changes earlier.
How Huboo Could Have Been Saved
The company should have pursued sustainable growth instead of pursuing aggressive expansion.
The company should have implemented cost reductions at the beginning instead of delaying until the situation became irreparable.
The company should enhance its financial reporting to establish trust with investors and customers.
The company should expand its revenue base by offering services beyond traditional fulfillment operations.
Conclusion
The leadership failed to recognize crucial warning signs before the collapse of Huboo because they ignored them until it became unavoidable. The new ownership of Huboo Tech Limited has taken over but will they apply lessons from previous mistakes or face another inevitable failure?
