A CONTROVERSIAL bakery has closed its flagship store after admitting to punters who invested in a six-figure crowdfunder to expand the brand are unlikely to ever get their money back.
Bross Bagels inEdinburghentered financial trouble with millions in mounting debts nearly two years ago.
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Hyperlocal site EdinburghReporter previouslyrevealed that the company is in debt of up to £1.2 million - but the Bross assets were bought for £18,000 the day before the liquidators were appointed.
Their original shop in Portobello was later reopened under a new company called Hot Mama Bagel Ltd by boss Larah Bross.
Small suppliers and unsecured creditors to Bross Bagels lost out around £280,000.
And approximately £635,000 of that is due to Inland Revenue in unpaid taxes, national insurance and VAT.
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But last night, the new firm announced it was shut for good after Ms Bross issued an update she was stepping back from operations citing the business was taking“a significant toll on my mental health and that of my family.”
Their High Street unit was closed for several weeks with a notice in the window claiming it would reopen on July 15 after the "trade holidays" - but it never did.
The website for Hot Mama was also taken offline and the domain deleted from the internet.
And loyal customers of Bross Bagels - who donated £1,000 each over two rounds of crowdfunding with the promise of being repaid after a four year period - may not ever see a return from their cash.
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Investors of £1,000 were originally told they would receive £100 of vouchers for Bross Bagels per year for 4 years, then repayment.
The funds raised allowed Bross to open the Bross Bakery in Portobello in May 2021, reported The Herald.
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But in a message to her "Sharholers" this week, Ms Bross said: “It is with a heavy heart that I write to inform you about the cessation of trading at our Portobello location.
"This decision has not come lightly and is the result of financial and operational difficulties that have proven insurmountable over the past year.
“I have been navigating through substantial personal guarantees and debts stemming from our recent restructuring.
"The financial strain, coupled with the immense stress of trying to steer the company through these turbulent times, has taken a significant toll on both my mental health and that of my family.
“I want to assure you that the Bross brand will live on. While I cannot promise a return on your investment with Bross Bagels at this moment, I remain committed to finding a way to make it up to you in the future.
"I am dedicated to exploring all possible avenues to ensure that your faith in Bross Bagels is ultimately rewarded.”
One angry investor told The Edinburgh Reporter they were unimpressed by Ms Bross's actions after she was pictured on social media with posing Peter Andre and reality star Gemma Collins after appearing at several Foodie Festivals this summer.
She said: “She has led us up the garden path with flimsy promises that she would make good the debt and repay our faith.
“It jars with me that while her core business in Portobello has been shut for weeks she has been poncing about at these Foodie Festivals doing bagel demos, making her stupid Instagram videos, and taking selfies with so-called celebs.”
It comes after the Bross Bagels store at the capital's St. James Quarter closed in September 2023 with a leaflet thanking its customers and informing them they are still open in Bruntsfield and Portobello.
It is unclear the Bruntsfield store is still open.
Larah Bross formed the bagel shop in 2017.
Her co-director in Bross Bagels, Marc Millar, oversaw its expansion across the capital as customers served the once-flourishingbusiness.
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Larah Bross continued to trade under the new name of Hot Mama Bagels before AAB was appointed as interim liquidator.
Larah Bross has been approached for comment.
