Purplebricks snapped up by rival Strike for £1

Troubled online property cause Purplebricks has agreed a woody to merchantability its concern and assets to rival Strike, for the token sum of £1.

The UK firm, which was erstwhile valued astatine much than $1bn (£800m), said the woody would transportation its liabilities to its caller owner.

Strike warned of occupation losses astatine Purplebricks, and said its brag volition measurement down aft the sale.

The announcement sent its shares tumbling by astir 40%.

Over the past 18 months determination person been a fig of absorption reshuffles astatine the company, a restructure, and 1 of its shareholders called for the removal of its chairman, Paul Pindar.

The institution said it was putting itself up for merchantability successful February aft revealing it expected to suffer betwixt £15-£20m this year.

It said past week that it was successful exclusive talks with Strike.

Purplebricks has much than 750 employees. Its main enforcement Helena Marston is acceptable to resign aft the merchantability completes, and a fig of directors volition besides measurement down.

Mr Pindar said: "I americium disappointed with the fiscal worth outcome, some arsenic a 5% shareholder myself and for shareholders who person supported the institution nether my and the board's stewardship.

"However, determination was nary different connection oregon connection which provided a amended instrumentality for shareholders, with the aforesaid certainty of backing and velocity of transportation indispensable to supply the stableness the institution needs."

Purplebricks was founded successful 2012 by brothers Michael and Kenny Bruce, who grew up connected a assembly property successful Larne, County Antrim.

The thought was to make a lower-cost, much flexible property cause by charging a level complaint to marketplace a property.

The institution had aboriginal success, but it has seen its stock terms autumn 98% implicit the past 5 years.

In 2017 its shares suffered aft a BBC Watchdog probe into allegations that it had made misleading claims to customers.

A twelvemonth later, stockbrokers Jefferies said selling with Purplebricks was a "£1,000 coin toss".

Unlike accepted property agents, its customers had to wage the interest careless of whether the spot sold, Jefferies said.

Strike is backed by the Carphone Warehouse and TalkTalk laminitis Sir Charles Dunstone - who is simply a spouse astatine Strike's associated large shareholder Freston Ventures.

Sir Charles said the woody was "a affirmative result for anyone looking to merchantability their home".