Loot calls in administrators - TechCrunch

Loot has declined to comment but, citing sources, TechCrunch says that the company's 60-odd employees were told the news today.

Launched in 2014, with more than 175,000 sign-ups, Loot is a digital current account targeting students and young people. Customers get a prepaid debit card and personal insights into spending patterns, allowing them to set daily or weekly budgets.

In January, Bó, a digital-only bank being developed by RBS's NatWest division, revealed that it had topped up a previously undisclosed £3 million investment in Loot with another £2 million.

Yet just months later Loot has run out of cash and hopes that RBS would save the business by buying it up have been dashed, says TechCrunch.

Loot's website is still prominently advertising a Crowdfunding effort on the Seedrs platform, although the link appears to have been taken down and Seedrs has used Twitter to emphasise that the process was still in the pre-registration stage and no investment by its users has been made.

For the avoidance of doubt, no investment was made by Seedrs investors into Loot. Our investors were provided the opportunity to pre-register their interest in investing. We’re saddened to hear that Loot’s wider fundraising round was unsuccessful and wish their team the best.

— Seedrs (@Seedrs) May 22, 2019

We’re saddened Loot's wider fundraise was unsuccessful. Their crowdfunding campaign was still being reviewed and due diligence taking place. Only the opportunity to pre-register interest was being offered.

— Seedrs (@Seedrs) May 22, 2019