Home of Choice in eleventh hour talks

30 April 2010 | By Natalie Thomas

Home of Choice is in new talks with a potential investor to acquire the business.

In a statement today, Gerry O’Brien, chief executive of Home of Choice, says: “I am pleased to be able to provide you with an update in light of the recent market rumours that have arisen regarding the financial position and future of the company.

“Let me clear up a misunderstanding - Home of Choice is not in administration. The directors had to file a ‘notice of intention’ to appoint administrators under our fiduciary responsibilities.

“Home of Choice is currently in serious negotiations with a significant investor who is looking to safeguard the going concern status of the business. We and the investor are seeking approval from the FSA and we expect them to respond early next week.”

He says the network and its bank are completely supportive of the proposals and are working towards a successful conclusion expected next week.

He adds: “In light of the above, I urge you to ignore any rumours that are circulating and not to take steps to terminate your contract with the company thereby keeping your licences and registrations intact.

“I am sure you are all aware that the negotiations we are involved in are aimed at safeguarding the future of the business and the employment of the company’s staff.”

He says he anticipates being in a position to provide a further update on Tuesday 4 May 2010, including assurances about commission and fees owed.

He adds: “I would like to take this opportunity to thank you all for your continued support and commitment during this period of time.”

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Readers' comments (32)

Anonymous | 30 Apr 2010 3:56 pm
Didn't Network Data say the exact same thing before they collapsed without paying anyone? The question has to be asked, what serious investor would buy a network that can't function as a profitable entity already - in buying the assets, they also buy with it the liabilities.
That said, very sad to see HoC going this way and wishing them every luck in trying to secure some sort of deal to pull themselves and their ARs out of this situation.
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AR of HOC | 30 Apr 2010 4:00 pm
For most (including myself) the trust is gone

I for one won't be giving them anymore time
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Hopeful HOC AR | 30 Apr 2010 4:06 pm
Here I am living in hope that HOC are rescued, my outstanding commissions paid, my pipeline business secured and a secure future to place new business.

If there is a god, please let these talks prove positive! ! !
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Anonymous | 30 Apr 2010 4:14 pm
Given the recent events and lack of communication from the directors, would HoC AR's be happy continuing with the network assuming a rescue takes place? I applaud any attempts by the directors to save the business, and anything paid to the AR's will be over and above the expectations of this morning, but can the directors be trusted going forward? I for one would be looking to go elsewhere.
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Anonymous | 30 Apr 2010 4:23 pm
Home of Choice AR
What a shambles!!
Who says the Directors are looking to save their own skins with this latest deal?!
Trust is gone, i am afraid.
It's been mishandled at every step and I feel seriously tricked and let down. Everyone they claimed to care about (Employees & AR's etc) has been hurt and will be seriously out of pocket.
Do you expect me to change my ongoing plans? Will it all be okay by Tuesday? I think your Network is and will be a lot smaller going forward.
Yours unhappily...
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Anonymous | 30 Apr 2010 4:37 pm
I just hope the FSA are able to handle another 8000 odd DA applications. There's already a 6 month waiting list, God help all of us torn by HOC...
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Chris Downham | 30 Apr 2010 4:46 pm
So that we can express our views collectively and professionally to HOC (if the eleventh hour talks) are successful please email me chris@simplicityfinancial.com so I can communicate directly with you and get your feedback / input. We don't really want to be making too many comments on forums. If things continue we need to be better protected and have our views clearly expressed to the board.

HOC AR
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David Penny | 30 Apr 2010 4:49 pm
Knowing John Ahmed, he will not be letting the dust settle and am sure that he is working 24/7 with his fellow directors to make things happen. From what I know HofC were obliged to advise the FSA of there intentions to enable investment into the business to proceed. As with this type of transaction nothing can be confirmed until it is concluded which obvious feeds rumours of this nature. Have some faith in the guys as difficult as it may seem
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Bob Scott | 30 Apr 2010 4:50 pm
I do understand where the disappointment and even cynicism comes from in our fractured industry,but do NOT forget,Richard Coulson and Gerry OBrien revolutionised the Network landscape and HoC was one of the very few to always come out on top with their ARs.I for one,wish them the best of luck.If HoC does fail,i fear for the remainder of the intermediary market.Time to stand tall guys.
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Anonymous | 30 Apr 2010 4:51 pm
If this is true then why wasn't it explained yesterday. Also i thought administrators had been appointed.

Too little too late trust has gone. If a deal is done many will simply take their pipeline and then leave anyway.
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