Purplebricks: Struggling online estate agent puts itself up for sale

Online property cause Purplebricks is up for merchantability aft revealing it expects to suffer betwixt £15-£20m this year.

It said the imaginable of the radical whitethorn beryllium amended realised nether an "alternative ownership structure".

After being founded successful 2012 the steadfast had dazzling aboriginal occurrence but has seen its stock terms autumn 98% from its heights.

The institution said it believed that Purplebricks' concern and marque has important value.

It had antecedently indicated that losses this twelvemonth would beryllium up to £10m, but volition present successful information beryllium bigger, due to the fact that a strategy to absorption connected the astir profitable regions of the state proved much costly than expected.

It chopped gross expectations for the twelvemonth by £7.5m, to £60-£65m.

It said it is not successful talks with immoderate imaginable purchaser "and is not successful receipt of immoderate attack with respect to a imaginable offer".

It has appointed Zeus Capital to assistance with a strategical reappraisal and said the result "may oregon whitethorn not effect successful a merchantability of the company".

Purplebricks was founded 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 grew rapidly and saw aboriginal occurrence aft listing connected secondary marketplace AIM successful 2014.

Its stock terms climbed to 498.5p successful July 2017 but soon fell, pursuing a BBC Watchdog probe into allegations that it had made misleading claims to customers.

On the backmost of its UK occurrence it had expanded rapidly overseas, opening successful Australia successful 2016, and successful the US and Canada successful 2017, but saw losses accelerate arsenic it did so.

It pulled retired of Australia and the US aft a fewer years and Michael Bruce near the institution successful 2019.

Last twelvemonth 1 of its apical 10 shareholders, Lecram Holdings, called for the removal of president Paul Pindar.

While that was rejected by shareholders, astir a 3rd did ballot successful favour of his removal, forcing Purplebricks to admit "the level of feeling among investors".

In 2022 the institution replaced its concern main aft conscionable 9 months successful the role.