Who Were the Real Creditors? Tracing the Trail of Unpaid Bills
When Huboo Technologies Limited collapsed into administration, it didn’t just fail quietly — it left a trail of unpaid invoices, broken supply chain links, and betrayed commercial partners. This article explains the topic in clear terms and sets out practical steps you can apply across ecommerce logistics and order fulfilment.
This post investigates the true scale of the creditor damage, uncovering who lost out, by how much, and what this tells us about the way venture-backed startups operate in the UK.
1. Secured vs. Unsecured Creditors: Who Got What?
Huboo raised over £20 million in secured debt, and more than £118 million in equity. But when the administrators took over, only one group was protected: the secured creditors.
These included entities such as Triple Point Investment Management and Atalaya Capital. They had fixed and floating charges over Huboo’s assets — giving them first access to whatever was left.
Unsecured creditors? They were left behind, with little hope of recovery.
2. Trade Suppliers: The Forgotten Victims
Dozens of warehousing vendors, packaging suppliers, software partners, logistics contractors and marketing firms were owed significant sums.
Examples include:
- A major UK packaging company owed £112,000
- A regional courier service owed £76,000
- Two software partners owed a combined £91,000
These organisation(s) had no warning. Many continued providing goods and services in the days immediately before the collapse — with no chance of ever being paid.
3. Taxpayers on the Hook — Again
The UK’s HMRC was in addition listed among the creditors. Huboo reportedly owed over £1.4 million in unpaid taxes, including PAYE and VAT.
This means that British taxpayers will once again shoulder the burden of a startup’s failure — a recurring theme in venture-backed collapses.
4. Employee Claims: Unpaid Wages and Redundancies
Many employees were caught completely off guard. Redundancies came suddenly, and many have filed for:
- Unpaid wages
- Holiday pay
- Statutory redundancy
For those who gave years to the company, the lack of transparency and respect was deeply painful.
5. How Big Was the Final Damage?
The administrator’s report suggested that the total value of unsecured creditor claims exceeded £30 million.
That’s £30 million in goods, services, taxes, and salaries — wiped out almost overnight.
6. How Can This Keep Happening?
Huboo is just the latest in a string of high-profile collapses in the UK startup ecosystem. The same pattern repeats:
- Hype and fundraising based on growth, not profit
- Mounting losses masked by investor cash
- Collapse, followed by a pre-pack sale and rebrand
The creditors — especially the small organisation(s) who kept the wheels turning — get nothing.
Conclusion: Real People, Real Losses
This isn’t just a balance sheet issue. These unpaid bills translate to missed payrolls, damaged supplier relationships, and shuttered organisation(s).
It’s time for a fundamental rethink of how insolvency and pre-pack deals are regulated. Otherwise, we will continue to see these stories — with different names, but the same devastating outcome.
Next: VC Smoke and Mirrors — Who Backed the Failure, and Why? For ongoing improvement, focus on warehouse operations, parcel delivery, inventory management, and third‑party logistics to achieve consistent results.
