Finance

Instagram-hyped fintech Lanistar in crisis after staff down tools over unpaid wages

Celebrity-hyped fintech firm Lanistar is facing a growing crisis after staff in its London office refused to work this week over thousands of pounds in unpaid wages.

“Everyone is on strike, we have downed tools,” one staff member told Financial News. “It’s boiling over to the point of anger, it’s become an untenable situation.”

Lanistar was contacted for comment.

Last month FN revealed that Lanistar staff in London were owed thousands of pounds in unpaid salaries by the struggling fintech.

READ Lanistar UK staff plea to be paid: ‘People are genuinely suffering’

A spokesperson for the company told FN on 18 June that there had been a “small number of delays with salary payments, but our new funding is currently being finalised and expect this issue to be resolved within the next two weeks”.

The Lanistar insider said on 2 July that “not a penny” in unpaid wages had been paid to staff in the last two weeks.

Staff have been facing problems with unpaid wages for months, with multiple current and former Lanistar employees telling FN they are owed significant sums in missed salary payments.

The Hammersmith-based fintech startup is developing a payment card that has been heavily advertised by celebrity influencers.

The company launched pre-registration for its card in November, as part of a campaign featuring Instagram posts from a range of celebrity influencers urging their followers to sign-up.

The card has still not been launched and the company is now at crisis point, with staff refusing to work because of unpaid salaries.

READ Celebrity fintech Lanistar breaches advertising rules as ‘misleading’ security claims continue

Lanistar is also being pursued by law firm Charles Russell Speechlys over an unpaid debt, according to a court filing dated 9 June.

A spokesperson for Lanistar told FN at the time that the startup had recently secured “significant funding” from investors and said it expects the law firm’s claim to be “completely resolved within a matter of days”.

“We are finalising a payment plan with CRS, which was agreed prior to the claim being made. It was raised automatically and is now being withdrawn as payment terms have been agreed,” the spokesperson added.

Charles Russell Speechlys declined to comment at the time.

READ Law firm Charles Russell Speechlys pursues celebrity fintech Lanistar over unpaid debt

To contact the author of this story with feedback or news, email James Booth

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