Red Letter Day’s suppliers step up demands
Action group formed to chase debts
Suppliers owed millions by adventure experience firm Red Letters Days (RLD) have set up an action group in an attempt to secure their money. After Red Letter Days, founded by entrepreneur Rachel Elnaugh, went into administration last week, the company was acquired by Peter Jones, her fellow judge on the popular television show Dragons’ Den.
Jones and his partner Theo Paphitis said they would enter into discussions with suppliers, which organise events such as hot air ballooning, bungi jumping and paintballing, to re-establish a ‘direct working relationship.’ Some companies are reportedly owed £125,000.
Over the weekend, firms were contacted and asked to subsidise up to 50% of the costs incurred with every voucher redeemed, while Red Letter Days would pay the balance.
This move, however, was met with anger by many of the suppliers. In response, several companies have set up an action group and appointed a debt recovery firm to attempt to get the debts settled.
“These people [Jones and Paphitis] have to realise that we too are in business to make a living. We will not subsidise their venture when they clearly have the ability with their amassed fortunes to settle these debts,” said a spokesperson for Ballistic Paintballing, one of RLD’s suppliers.
“If they want to use us, they will need to settle the debt and keep within the agreed limits we set Rachel Elnaugh.”
A statement by the Red Letter Days Suppliers Action Group added: “[Suppliers] await the date of the creditors meeting that they expect the Red Letter Days administrators to call in the next few weeks.
“They will expect some straight answers as to what went wrong and where the money is that was paid over for experiences which they have already delivered.”
According to press reports, Red Letter Days failed with debts of around £12 million.