SweetSpot, the former organiser of the Tour of Britain and Women’s Tour, is facing debts amounting to more than £2.6million.
The company entered liquidation in January, when it appointed recovery firm KRE Corporate Recovery to handle the business. Now, a detailed statement of SweetSpot’s affairs has been released, dated at the time of liquidation, detailing a sum of £2,618,524.31 owed to 20 creditors.
Among those owed money are high street bank HSBC and government fund Sport England, who provided secured loans to the race organiser of £600,000 and £1.3m respectively. A number of smaller companies are owed sums varying from £365 up to £260,000.
Speaking to Cycling Weekly, one creditor said they would be “surprised” if the money they are missing is ever returned to their business.
“It’s quite some money and it’s too bad that it’s like this,” they said. “I hope there will be a solution.”
Another creditor told of their frustration at the situation. “I wouldn’t expect anything to come back,” they told Cycling Weekly. “I don’t expect to get a penny back.
“[Our business] should survive it, but only just. We’re going to have to work our overdraft. That money [we are owed] was scheduled to be paid out to HMRC, so we’ve had to split what was in the bank and what we owe HMRC, and pay interest on it.
“It has just made me have to work my arse off to pay off the debt,” they added.
SweetSpot’s statement of affairs also revealed a loan paid to the company’s directors, totalling £813,041.85. The liquidators confirmed to Cycling Weekly that this money had been previously drawn out of the business, and should now be returned to be made available to the creditors. Cycling Weekly has contacted SweetSpot CEO Hugh Roberts for comment.
The former Tour of Britain organiser lost its licence to host the stage race last November, following disputes with British Cycling over an alleged unpaid licence fee of £700,000.
The event's future was then cast into doubt, before British Cycling stepped in to guarantee the race, as well as the Women’s Tour, which it has renamed the Tour of Britain Women.
SweetSpot’s financial woes also include threats of legal action from the Isle of Wight Council, who claim to have lost out on £350,000 in hosting fees and costs when the race was cancelled in 2022, following the death of Queen Elizabeth II.
Cycling Weekly revealed last month that the prize money from the 2023 edition was still yet to be paid, five months after its conclusion. Race winner Wout van Aert (Visma-Lease a Bike) is understood to be among the riders owed funds.
