Artisan online cheesemonger Cheesegeek has been rescued from administration by the Albex Group, The Grocer can reveal.
However, the pre-pack deal means Dragons’ Den investor Steven Bartlett and other backers, including the crowd, won’t see a return on their investment. Cheesegeek was Bartlett’s first investment after joining Dragons’ Den in 2022, with the entrepreneur offering £150k in return for a 5% stake that valued the business at £3m.
Founder Edward Hancock, who started the subscription cheese service in 2017, will continue to run Cheesegeek as managing director under Albex’s ownership.
He told The Grocer the pre-pack deal meant there would be minimal disruption to suppliers and customers.
“I began Cheesegeek seven years ago, determined to drive real change in specialty cheese within the UK, shining a spotlight on the amazing producers we have here,” Hancock said.
“We have had some incredible highs and lows over those years, as any founder will attest to as they try and scale a business from ground zero, and I am incredibly grateful to all of our shareholders who have supported that vision over the years.
“Our acquisition means we can continue this mission, with minimum disruption to any of our amazing suppliers, or customers, albeit down a slightly different path than we might have imagined. But most importantly, it means we are now going to be in the strongest possible position to deliver on the goal that I began with back in 2017.”
Hancock, a former investment banker, told the dragons during his appearance on the BBC One show in 2022 that he had invested £720k of his own money in the business and raised a further £700k from investors. He secured an offer of £150k from Bartlett.
Cheesegeek also raised £421k during a campaign on Crowdcube in late 2023 to continue growing the business and fund ambitions to expand into physical retail. The crowd raise saw the company valued at £5m and took investment secured over three rounds to more than £2m.
And last year, the company launched a new range of artisan cheeses in Sainsbury’s.
Cheesegeek accumulated combined losses of almost £3m on total revenues of in excess of £4.5m, driven by a capital intensive DTC model, according to the most recent accounts available at Companies House for the year to 30 April 2023.
It had been trying to raise more money from existing investors to execute a plan to save money by outsourcing its fulfilment, but the process took longer than hoped and the business ran out of money, The Grocer understands.
Cheesegeek hired insolvency firm KRE Corporate Recovery to explore its options ahead of the pre-pack deal with Albex, a Scottish ingredients business.
Founded in 1986, Albex generates annual turnover £450m and operates 10 sites, employing more than 300 workers.
The group already has a presence in the cheese market thanks to the acquisition of cheese cutter & packer Tom Walker & Sons in 2020.
Most recently it acquired Fiddes Payne last month and also picked up the Rainbow Dust brand from collapsed cake decoration specialist Real Good Food in 2023.
“Cheesegeek’s mission to support local artisan cheesemakers and make great cheese accessible is an important one,” said Albex director Andrew Dalglish. “We’re delighted to be able to support it.
“As a family company we always take a long-term view and are committed to fully supporting Cheesegeek. Our funding gives them the stability needed to continue operating and more. It will allow them to achieve their full potential and do so in partnership with the artisans who bring much needed diversity and craftsmanship to the UK’s cheese industry.
“From a day-to-day perspective, it’s very much business as usual at Cheesegeek. The same team remain and continue to be led by founder Edward Hancock. They’ll continue to fulfil orders uninterrupted and provide great service. And they’ll continue to partner with a core group of artisan cheesemakers. In addition to that, we’ve already begun planning some major investments designed which will see Cheesegeek embark on some exciting new projects.”
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