I am writing to you about the current position of LocoSoco Group Plc. Despite our relentless efforts and considerable personal investment, we find ourselves facing critical financial challenges that may necessitate the closure of the business unless urgent capital can be secured.

As it stands:

• Audit fees required to bring our accounts into good standing total around £60,000.
• The company is burdened with debts of around £230,000 and limited access to funds post the delisting in November 2023; This is excluding approximately £120,000 owed to me as director in unpaid wages—wages I am prepared to forgo entirely if we are able to restructure successfully and secure the necessary investment.
• To fully address our creditors, stabilise operations and effectively relaunch, we urgently need to raise £500,000.

Since our inception and subsequent listing, we navigated considerable turbulence—including the unprecedented disruptions of the COVID-19 pandemic. Initially, our eco-products approach showed promise, with over 700 retail partners and relationships established with more than 100 brands. However, consumer trends shifted sharply and sustainable products alone proved economically unviable in a challenging economic environment.

Our strategic pivots—including launching Our Community Store, which attracted 35 charities rapidly—demonstrated concept appeal but struggled to achieve consistent consumer traction. Attempts to diversify our business into waste recycling technologies were severely impacted by rising interest rates, ultimately rendering this direction financially unsustainable.

Despite significant efforts to explore mergers, acquisitions, partnerships and even selling the business as a listed shell we have engaged external advisors and bought in new directors however our efforts to secure the necessary funding and debt restructuring have not yet borne fruit.

Nevertheless, there remains a pathway forward. The original vision was for a platform where communities could set up micro marketplaces to showcase what’s available locally—enabling sales, rentals, group purchases, services, subscriptions and donations—to build thriving local economies. This vision I have built into a secure and scalable platform that could be launched. 

With immediate financial intervention, we can stabilise our position, clear outstanding debts and position ourselves for what I believe would be a viable and profitable relaunch.

In this path forward, we aim to launch the new platform, address outstanding creditors, negotiate debt reductions where possible offer equity in exchange for cash to willing creditors.

Additionally, we would consider an off-market listing as an interim measure before exploring a return to public markets. This strategic plan could take 2-4 years to fully materialise and create liquidity for shareholders.

We are now calling upon you, our valued shareholders, to consider your continued support and potential investment. Without securing the critical capital injection from shareholders or external investors, we will be left with no alternative but to close the company.

I invite all shareholders interested in discussing possible solutions or providing additional support to reach out urgently via shareholders@locoso.co. Your engagement at this critical juncture can help determine the future direction of LocoSoco.

Thank you for your continued support and understanding during this challenging period.

Warm regards,

James Perry

Founder, Director & CEO LocoSoco Group Plc