Major HIP company collapses

The market slowdown has claimed another victim, Hipstar.

The HIP provider, based in Chertsey, Surrey, has gone into administration.

Callers to the company are told that a liquidator is to be appointed and that anyone with queries meanwhile should email info@hipstar.co.uk

Hipstar also had a significant franchise operation and is believed to have sold 92 franchises last year and 31 the previous year. It was still aiming to sell more franchises this year.

The company came late to the market, launching in March 2006. It aimed to be a major provider and was geared up to doing 150,000-180,000 HIPs per year.

However, it was caught first by the delayed introduction of HIPs, followed by the collapse in residential sales.

Its parent company, AIM-listed Network Data Holdings, which continues in business and which also has conveyancing and mortgage operations, made a pre-tax loss of £1.1m last year after a profit of £0.3m the previous year. It is believed to have spent up to £5m getting Hipstar up and running.

This spring Network Data’s chief executive Richard Griffiths said that 2008 would be difficult for companies operating in the mortgage and property industries.

Hipstar is one of the largest and highest-profile of the HIP companies to become a casualty.