How The Female Social Network torched $67,000 a week on its plans to become the next Tik Tok
Sydney couple Fi and Duncan Bendall had dreams of creating the next TikTok. They renewed their vows at Queensland’s exclusive Qualia resort. But their marriage fell apart as they lost $67,000 a week.
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Exclusive: An Aussie-run business which aimed to be the next TikTok but ended up in court over racism claims, burnt through $67,000 a week in a disastrous move to the top end of town in London.
The Female Social Network, which was helmed by former couple Fiona and Duncan Bendall, of Mosman on Sydney’s northern beaches, tore through $3.5 million of shareholders cash in just 12 months.
The business was headquartered in a London mansion, just a block away from Park Lane, Mayfair and a five-minute walk from Selfridges on Oxford Street.
The dark blue squares on the Monopoly board are expensive in real life too, and it was understood the rent on the London property that was owned by prominent Conservative UK politician Jacob Rees-Mogg was $20,000 a month.
Sarah Ferguson, the Duchess of York, was at their London launch at celebrity hot spot The Ivy, where the couple proudly posed for photographs.
The company is now in liquidation, as investors with singed fingertips count the cost.
The case hit the headlines this week because Duncan Bendall, 47, successfully sued his now ex-wife’s company, claiming in a London employment tribunal that she was racist towards him because he was Australian.
The extent of the Brit’s dislike for him was laid bare in an email tabled at the tribunal. It said: “I hate Australian mentality and you have it droves … And DO NOT say you are a founder in MY business MY efforts ever again You Leech – you don’t even believe in women or have ever struck your neck out.”
Mrs Bendall, 54, did not participate in the London employment tribunal case and the liquidator did not defend it.
Mr Bendall is unlikely to see a cent of his $180,000 payout because the liquidators of the company that aimed to be a social media giant but turned into a minnow were struggling to find a buyer.
Liquidator David Rubin said he would close the business unless he could find a buyer by Christmas.
“It is a good business, it just wasn’t run very well because they were too busy fighting, the concept is very good,” he said.
“We were held up a bit by COVID but we hope to have it sold or we will close the case by the end of the year.
“We don’t know how they spent £2 million ($3.5 million) of other people’s money in a year. I’m not quite sure really. It’s all in the statement of affairs.”
He said shareholders were aggrieved and had considered legal action but the prospects of recovering any money were low.
“We’ve got a couple of people interested in buying the business but not a lot,” he added.
At one point The Female Social Network claimed it had 96 million users, and was valued at $310 million ($170m GBP).
It promised to help businesses target female opinion leaders using influencers through their social media profiles.
But the company was put into liquidation in June this year, with accounts filed on Britain’s Companies House showing it had intercompany loans of $4 million.
The couple, who renewed their vows at Qualia on Hamilton Island in January 2019 and were seen travelling business class, broke up shortly after Mr Bendall arrived in the UK, as the company faltered.
They had been married for almost 20 years and were prominent figures on Sydney’s northern beaches.
Investors included Betfair founder Mark Davies, and a billionaire Indian family, but they were likely to get nothing unless a sale was secured.
Mrs Bendall, who was a finalist in the New South Wales Business Woman of the Year awards in 2019, had moved to London to expand the business and seek new investors.
But it did not match their expectations.
She was seen last week in London catching up with friends last week.
“With my dearest beautiful partner and a very creative woman Fi Bendall at a socially distant party... we need to start enjoying ourselves again!,” friend Olga Balakleets posted on Facebook along with a picture of the pair.
Mr Bendall claimed in the London employment tribunal that the couple, who had turned their home into their office, fought about clients drinking and smoking at the property.
He declined to be interviewed for this story, but said in an email that the company, not him, was responsible for the spending.
“As referenced in the court documents, when I was removed from the operations and bank accounts of the company, it was in a very healthy state with over £2m in the bank account, a healthy pipeline and a company valuation of £170m,” he said.
“It is also in the court records that I too (as a director and shareholder) asked numerous times where the money was going and was blocked by the executive.
“As a separate matter, it should be noted from the court docs that I offered to settle several times to stop the board disputes all of which were flatly rejected by the board.”
Mrs Bendall declined to comment.
stephen.drill@news.co.uk