A high-tech finance company in York has gone into administration with debts of more than £2 million.
Fido Finance Limited, which had its HQ at Innovation Close on the York Science Park, ran bespoke business banking under its Fidomoney brand.
Now it is in the hands of joint special administrators (JSAs) Kristina Kicks and Ed Boyle of Interpath Advisory.
Special administrators are appointed in a case where an electronic money institution fails.
The bank’s customers now have their funds frozen. “The JSAs recognise that this is a very difficult position for customers to be put in,” the administrators said.
“One of the JSAs’ key objectives is to resolve this position as quickly as possible.”
The Fido Finance administrators were appointed last month by the High Court. They have invited creditors and customers to a meeting to discuss the situation on 9 August.
In a statement, they said : “Our initial actions will be to secure the assets of the company, including securing all customer safeguarded funds.
“Whilst every effort will be made to return funds to customers as soon as possible, it will firstly be necessary for the joint special administrators to secure control of all relevant information, reconcile balances and ensure that the necessary due diligence and know your customer information is present, current and correct.
“A formal claims process will be put in place in due course; however our current priority is to complete a funds reconciliation. Unfortunately, customers will not have access to their funds while these works are undertaken.”
Customers and creditors can find out more here.
List of creditors
Figures released by the administrators estimate the total owed by Fido Finance Limited as £2,603,671.
In their report, the administrators say the company has zero assets.
Among the preferential creditors are 12 employees, owed a total of £37,901.
The company also owes HMRC more than £480,000. City of York Council are owed £15,782.
Fidomoney sponsored the Retailer of the Year category in March’s Visit York Tourism Awards. Accounts show the company owes Make It York £1,500.
Fido Money was also a sponsor of York Rugby League FC, and York City Knights Ltd are owed £15,999.95.
Fido Money was founded in 2019, “by veteran economists who are experts in financial crime and anti-money laundering”.
It provided business current accounts “which are built around the start-ups and small businesses it works with”.
A promotion in The Times last year said: “Since its inception in York, fidomoney has expanded its business to the US, Belgium and North Macedonia, and was nominated for a Service of the Year award at the 2022 White Label Expo.
“It’s proud to offer one of the fastest, most secure and cost-effective card processing options available, as well as painless account management and dependable support.”
Fido Finance Limited has two active directors, according to Companies House: Jacob Parker-Bowles and Alexander Gatt.
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