Home of Choice in administration

29 April 2010 | By Natalie Thomas

Home of Choice has announced today that it has filed with the High Court a notice of its intention to appoint administrators.

In a statement released today it says: “It is with enormous regret that the Board of Home of Choice announces that it has filed with the High Court a notice of its intention to appoint administrators.

“Over the past few months we have been working towards selling the company. We believed that having a fresh injection of capital would allow HOC to enhance broker services and grow the business. We were delighted that several offers were made to purchase the company during this process and a preferred bidder was identified.”

“We were convinced by assurances from an investor and our bank, that broker and staff payments, although delayed, could be made on Monday (26 April). Although the FSA granted a change of control to the investor (Thursday 22 April), talks collapsed at the last moment.”

It says this week it continued talks for the sale of the company with other investors.

But it adds: “However, we have not been able to secure an extension of our overdraft facility to cover the payment due to brokers and staff. Despite working our way through 2009 and placing the business in a position to be bought by a number of financial services groups, it has been impossible to complete the arrangements.

“Given our fiduciary duties as directors we must take the step of giving notice of our intention to appoint administrators.

“We currently await the appointment of an administrator, likely to be announced later today, and we will work with them to ensure the best possible outcome for brokers and staff.

“We would like to take this opportunity to thank those advisers and staff who have expressed support for Home of Choice throughout the past five years and assure you we will do whatever we can to assist the administration process.”

Mortgage Strategy understands that Baker Tilly will act as administrators.

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat

Readers' comments (49)

John Reid | 29 Apr 2010 11:54 am
Sorry to hear yet more Brokers been left high and dry.... I did give you waring early on in the week. I hope some of you heeded the heads up. !!
Unsuitable or offensive? Report this comment
James Briggs | 29 Apr 2010 11:59 am
Blu Debt Management is very sorry to hear of this unfortunate news and would like to wish the Directors, staff and ARs the very best in the future.
I would like to clarify that this news has no impact on Blu Debt Management agencies held by Home of Choice ARs and all commission will continue to be paid as normal.
Unsuitable or offensive? Report this comment
Anonymous | 29 Apr 2010 11:59 am
So much for Labour's insistence that banks are helping small businesses to recovery.
Unsuitable or offensive? Report this comment
Anonymous | 29 Apr 2010 12:00 pm
Do the contracts of ARs get ripped up then or can they still hold us to the three month notice period?

What are the implications of all this? My business is now more than likely to go under.

Thanks a lot HoC!
Unsuitable or offensive? Report this comment
HOCAR | 29 Apr 2010 12:01 pm
Would any of the smug posters from previous threads like me to pass the salt?
Unsuitable or offensive? Report this comment
Kevin friend | 29 Apr 2010 12:02 pm
This is sad. it is not the first and will not be the last. Most networks have a vunerable business model and did not support their AR's during some difficult times. just wait until Mortgage and mis-selling hits them! Some have not made sufficient provision for protection clawbacks too. How solvent are the rest?
Unsuitable or offensive? Report this comment
tony webster | 29 Apr 2010 12:05 pm
this is a real shame. I have the utmost respect for Richard & Gerry and i know they would have done everything possible for their AR's and staff. If HOC cant survive then the network model has to be questioned on its future.
Unsuitable or offensive? Report this comment
Roland Millward | 29 Apr 2010 12:07 pm
Network Data all over again. Stories that there is no problem and all of a sudden...... How many more networks are going to go the same way?
Unsuitable or offensive? Report this comment
Richard Evans | 29 Apr 2010 12:10 pm
Sorry to hear this news as I always held HoC, Gerry and the team etc in high regards. Hope all works out for the ARs - yet another kicking for the people in this industry
Unsuitable or offensive? Report this comment
Zebedy | 29 Apr 2010 12:12 pm
At this time I would forget about your contracvtual obligations. Your Network effectively broke them by not paying you what you are due and on time.
My sincere best wishes to all ARs with HOC,I had a discussion with an colleague who was with Network Data after the press release about staff not being paid earlier in the week and he was panicking that the same was happening again as had at Network Data and it appears that it unfortunately is.
Good Luck to All concerned
Unsuitable or offensive? Report this comment