Fergie showbiz f irm backed by Chinese on the brink in £10m funding crisis
FROM food blenders to ‘lifestyle and wellness’ guides, the Duchess of York is no stranger to colourful business ventures.
But The Mail on Sunday can reveal that her latest money-making enterprise is on the brink of collapse with multi-million-pound losses.
Founded by legendary songwriter Geoff Morrow – who has written hits for Elvis Presley and Barry Manilow – entertainment company Gate Ventures has backed a string of West End shows, i ncluding 42nd Street and Sunset Boulevard.
TV mogul Lord Grade is the company chairman while Sarah Ferguson, 59, is executive director.
Despite such high-profile backers, the firm appears to be in serious trouble and last year posted a £9.8 million loss. Sources close to Gate Ventures said it was scrambling for funds to prevent it from going into voluntary liquidation.
The Duchess of York joined the company in 2017 ‘ to assist with the branding and marketing of its products and productions’, according to its website.
Fergie’s upmarket tea company, Ginger & Moss, is understood to have an e-commerce joint venture with Gate Ventures. A source said: ‘I am amazed that the Duchess of York has got involved in this. They’re clearly using her Royal name to gain credibility.’ It is the latest in a series of business ventures the Duchess has embarked on following her divorce from Andrew in 1996.
These include selling a ‘Fusion Xcelerator’ food blender through her Duchess Discoveries website, and her ‘lifestyle and wellness’ firm Hartmoor , which collapsed in 2009 with debts of £600,000.
In 2015, Gate Ventures was removed from the London Stock Exchange after its corporate advisers quit amid concerns about the firm’s corporate governance when nearly 6,000 Chinese individuals rushed to invest in it. The new investors had been introduced to the company by shareholder Johnny Hon, a well- connected Hong Kong business man with North Korean links, who had joined the board. An official document seen by this newspaper suggests Gate Ventures’ troubles stem from a $10 million (£7.5 million) investment promised by shareholder Zheng Yongxiong, also known as Quentin, who had claimed to be finding additional investment from the Far East. The document says the money failed to arrive, and a source said the company was ‘running on fumes’.
Another City source said Gate Ventures was in talks with lawyers about taking legal action against Mr Zheng. The firm’s shares have plummeted 99 per cent in 12 months.
A spokesman for Sarah Ferguson made no comment last night, referring enquiries to Gate Ventures.
A Gate Ventures spokesman said last night: ‘Gate is a listed company and therefore cannot selectively disclose any information ahead of it being announced as per listing requirements.’
‘They’re using her Royal name to gain credibility’