Growth Street to wind down operations after being hit by pandemic

Growth Street, which has eight active borrowers in Yorkshire, said its focus will be on supporting its borrowers to find alternative sources of finance while ensuring that funds are returned to its investors.

Last month, Growth Street announced a “resolution event” which would involve recalling its current loan book and repaying funds to investors.

The original plan had been to switch to institutional debt funding. However, Growth Street said it wasn’t possible in the current environment to put together the package of equity investment and institutional funding necessary.

Kim Goetzke, COO at Growth Street, said: “It is with deep regret that we have taken the decision to begin a solvent wind down of the business once the resolution event is complete.

“This is not a decision which we have taken lightly. We believe passionately in Growth Street as a business and we will make every effort to ensure that the impact to our investors and our borrowers is minimal. Our team will continue to work tirelessly to return funds to our investors.

“The onset of COVID-19 presented numerous challenges for our business. We worked hard to find solutions which would allow us to emerge from the resolution event a stronger, more competitive business but unfortunately, we weren’t able to get there.”

"A core team will remain with the business to effect a controlled, solvent wind down, supporting borrowers and investors and to realise value from its technology. To those leaving the business, we will help you in every way we can.”

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