Purplebricks: Troubled estate agent sold to rival Strike for £1 as job cuts loom
Purplebricks has been sold for £1 to online estate agency Strike after shareholders approved the offer from the only remaining bidder.
It will see the troubled firm come under the ownership of its rival, backed by Carphone Warehouse founder Sir Charles Dunstone.
The online agency agreed to sell its business and assets to Strike for a nominal £1 after another bidder pulled out, claiming its financial condition was “significantly worse than expected”.
Shareholders approved the sale with 91% voting in favour on Friday.
“Following the passing of resolutions at the general meeting, completion of the business and asset sale to Strike… will take place today”, Purplebricks said in a statement.
It said its name would be changed to Bricks Newco before its shares stop trading on the Alternative Investment Market (AIM) stock exchange on June 15, after which the two brands are expected to be combined.
Chief executive Helena Marston has resigned from her role and as a director immediately, the firm said.
Purplebricks has seen its share price collapse after slumping to a loss and warning over its cash position.
Strike, which counts Carphone Warehouse and TalkTalk founder Sir Charles Dunstone as joint major shareholder, swooped in with the deal last month to take on its assets, liabilities and staff.
Mr Dunstone said that combining the two brands would “supercharge Strike’s mission to democratise house selling” and that the new business would be “even more disruptive”.
It could not specify how many roles are set to go, but it is expected to impact field agents and central support teams.
Lecram said: “The reason leading to Lecram’s decision not to proceed is, principally, that the financial condition of Purplebricks was found to be significantly worse than expected.”
The investor, which owns a more than 5% stake in Purplebricks, has previously criticised the beleaguered firm for not acting quickly enough to make improvements and salvage value for shareholders.
Proceeds from the Strike sale will be distributed to shareholders in “due course”, the company confirmed.
Anna Wise – Press Association