In December 2022, after pouring through pages of positive financial statements and meeting with sales reps, Andrew Shaw invested £30,000 into Fife’s Buffalo Farm.
Together with his uncles, his family ploughed £50,000 into what they saw as a company on the up.
Andrew was impressed with not just the business model, but plans to open a farming education centre.
The return promised would have seen his £30,000 investment hold the value of £48,000 after five years.
Membership was a “rewards-based crowdfund scheme”.
No shares in the company or securities were offered at any point, made clear in the founder’s prospectus.
But within four months of their investment, the in-kind benefits promised, disappeared and within a year the company had gone bust.
Andrew is one of 600 investors left “high and dry” by Steven Mitchell and his Buffalo Farm.
In March 2024 the company was placed in administration.
As the collapse was announced, Mr Mitchell set up a new company, running a farm and shop on the same site, now known as The Buffalo Farm Produce Ltd.
Alongside producers, small businesses and HMRC, investors — or founders as they were known — will not see a penny of their money back.
Founders came from all walks of life and from all over Fife, Scotland and the UK.
Labour MSP Claire Baker has her £1,000 investment noted in the parliamentary register of interests.
Scotland’s Rural College Alumni society also put money in.
And in total, more than £1m was put into The Buffalo Farm by the founders.
Family investment
Andrew, from Sutherland, told The Courier he met with a rep from the farm just before Christmas in 2022, when the investment drive was in full-swing.
“At first, I was only going to take one or two memberships out, but I ended up taking three out because I saw that the business was making money.
“It had good growth. They were in talks with Aldi, Asda and Morrisons.
“The business had a really good structure. And on paper, it was making money.
“So I invested £30,000, which would have given me £300 a month’s worth of meat.
“Now, I was never going to use £300 a month’s worth of meat, but I wanted to see this business do well.
“I was told he was trying to build an education centre on the side of the farm.
“It was going to get kids who were not very good at academics get into farming.
“I liked that idea, because not every kid does well in the education system.
“My uncles also put £10,000 in each. So as a family, we put £50,000 in.”
Buffalo Farm’s empty shelves
Andrew travelled to Boglily Farm in March 2023. But as he entered the shop, he was struck by how little there was for sale on the shelves.
Then, in May, the line of credit was suspended.
“I asked some questions about it. Steven said he had to do what was right for the business.
“And I could see which way business was heading.
“I got a couple of responses, where he said ‘we’re only temporarily suspending it’.
“It was totally against the contract I signed. The agreement was if I give him this money, he’ll give me credit for produce.
“I told him he was in breach of his own contract. And he fobbed me off.
“At the same time, he was setting up a new company and working out a plan on how to put the company in administration and buy it back for £40,000.
“This didn’t sit well with me, because I messaged two days before the new company was founded and asked about when they were reinstalling or restarting any of the founders benefits, or when people would start getting their money back.
“And then he put out a public apology video.
“He said the 2022 founders were actually presented with the wrong facts and figures when they invested.”
Founders ‘lucky to get anything back’
Andrew is one of the most vocally angry founders and admits leading a boycott.
Mr Mitchell previously complained to The Courier about protests made by the founders, which he said was trying to derail his new company.
Andrew says: “I have no intentions of ever visiting The Buffalo Farm again to purchase anything.
“And I will never use a store or a restaurant that uses his products.
“If I see somebody selling these products, I contact them and tell them (my story).
“I think that is a good idea to boycott all the businesses who associate themselves with them.
“The facts and figures they give us were wrong. And had I had that in the beginning, I wouldn’t have invested.”
Pre-pack sale
FRP, the firm charged with carrying out the administration process, said they approached 358 parties who might be interested in buying the business.
It was not publicly advertised, and the marketing process went live on February 14 2024.
Only one offer was received, from The Buffalo Farm Produce whose sole director is Steven Mitchell.
This was accepted, administrators say, for three reasons:
- The costs involved with the sale were significantly lower than the costs involved in the event of insolvency.
- The buffalo herd would have had no value in the event of insolvency, leading to financial and ethical costs in the event of having to cull them.
- 59 jobs would be preserved, removing redundancy payment claims, wage arrears payments, holiday and redundancy pay of around £64,000.
This is all within the law. Had he known it was up for sale, Andrew says, he would have considered putting in an offer to buy it.
“I have spoken to people from across Scotland who were founders. And I became very good friends with some of them.
“What he said to one founder was he needs us to stop the ‘witch-hunt’ online, so that the business can do well, and then he’ll start repaying the founders back.
“Now, it doesn’t work like that, does it?
“I’m 33 now and I can make that money back in my lifetime.
“But some people who were in their 60s and 70s, they’re never going to make that money back.”
Debts mount during administration
Administrators for The Buffalo Farm, FRP did not respond to a request for comment.
The most recent progress report from the administrators said that claims from unsecured creditors, which include debts to other businesses as well as investors into the fundraising scheme, now total £1.5m.
This is an increase of £268,700 in the past six months.
The unsecured creditors are unlikely to see a penny back from the administration process.
Meanwhile, HMRC, which ranks as a secondary preferential creditor, has submitted a claim for £581,200.
Last March, Mr Mitchell told us: ““Members of the founders scheme were unsecured creditors. This was explained.
“They were not investors, but part of the membership scheme.”
He added: “It really hurts me that they [the founders] feel betrayed. And I can see why.
“All I can say is I am heartbroken to do this [relaunch].
“This is not going to be a quick fix. I am not a business tycoon and this is not a business-type move.
“It is from a good place. I want to be honest with people and not try to hide.”
Conversation