An eco-entrepreneur has lost control of her bamboo toothbrush company, The Sustainable Bathroom Company Ltd, after a court found she misused business funds to pay for her children’s boarding school fees and support an "affluent lifestyle." Sophie Perhar blamed the company’s downfall on a finance boss, David Slinger, alleging he acted with "improper motives" after a dispute.
Key Takeaways
- Sophie Perhar, founder of The Sustainable Bathroom Company, has lost her business.
- She is accused of using "unauthorised" business funds to pay £85,000 in school fees and other personal expenses.
- A judge ruled against Perhar, stating she caused her own company’s failure.
- The finance company, Synergy in Trade Ltd, is owed a significant sum.
The Rise and Fall of a Sustainable Venture
Sophie Perhar launched The Sustainable Bathroom Company in 2019, initially finding success with a mosquito repellent. Her ambition then turned to developing an electric bamboo toothbrush with replaceable heads. By early 2022, the company had secured a supply agreement with supermarket chain Aldi.
To fund manufacturing costs, Synergy in Trade Ltd, led by David Slinger, agreed to lend the company up to £350,000, eventually advancing over £500,000 in exchange for a 30% profit share. Payments from Aldi were intended to go into an account controlled by Synergy to ensure repayment.
Allegations and Court Findings
However, due to an error with Aldi’s bank details, approximately €500,000 (£434,997) was paid into an account controlled by Mrs. Perhar. Instead of transferring these funds to Synergy, she used them to cover "urgent" personal debts, including £85,000 for her children’s school fees and £40,000 to pawnbrokers.
When Synergy demanded repayment of £376,291 in June 2023, citing a breach of the borrowing agreement, Mrs. Perhar sued, claiming Mr. Slinger had "improper motives" and sought to "destroy" her business after she complained about his inappropriate conduct to his business partner.
Judge Rules Against Entrepreneur
London’s High Court heard that Mrs. Perhar, whose husband is a top corporate lawyer, alleged Mr. Slinger was vindictive and acted with "improper motives." However, Mr. Justice Michael Green dismissed her case, ruling that Mrs. Perhar caused her own company’s failure through the "unauthorised use" of business funds. The judge stated that Synergy had acted with an "open-minded and constructive approach" and that Mrs. Perhar prioritised her "affluent lifestyle" and family needs over her contractual obligations.
The judge concluded that the company failed due to Mrs. Perhar’s actions, not due to any improper motive by Mr. Slinger, whose primary concern was protecting Synergy’s financial position. He deemed returning the company to Mrs. Perhar "unthinkable" given its current state.
