Arsenal midfielder Jorginho‘s foray into the world of investment has taken a significant hit as Gather, the investment app he backed, has entered administration after failing to repay a government-backed loan.

According to The Times, the company behind the app, Gather International, misunderstood the terms of the Future Fund loan, believing it would convert to equity, according to insolvency filings. The Future Fund, a pandemic support program, offered convertible loans to startups but required full repayment with a 100% premium if equity conversion conditions weren’t met.

Gather’s administrator, Chris Andersen, stated that the company’s directors were unaware of the Future Fund’s “hardline policy” on repayment, leading to a “very difficult financial position.” The company was placed into administration in May following a winding-up petition from the Future Fund.

Launched last year with £5.2 million invested, Gather aimed to attract young investors with its user-friendly interface and low minimum investment threshold. Jorginho, who owns nearly 5% of the business, reportedly saw it as a way to set an example for young footballers to plan for their financial future.

Despite efforts to secure a loan extension from the government, Gather’s attempts were unsuccessful. The British Business Bank, which manages the Future Fund, stated that extensions were subject to specific conditions, including timely requests and proof of the company’s ability to meet its financial obligations.

With the collapse of Gather, unsecured creditors, including the Future Fund, are expected to receive minimal repayment.

The Future Fund, designed to support innovative companies during the pandemic, has faced criticism for its stringent repayment terms. However, the British Business Bank remains “cautiously optimistic” about the program’s overall return to taxpayers.

As the administration process unfolds, it remains to be seen how much of the taxpayer’s investment will be recovered.