Estate agency brand Douglas & Gordon was confirmed to have entered administration yesterday.
There were rumours over the weekend that the well-known company had collapsed, although it is still listing sales on the portals and its own website.
The administration is being handled by Grant Thornton UK, which said in a statement: “I can confirm that Philip Stephenson and Oliver Haunch of Grant Thornton UK LLP were appointed as joint administrator to Douglas & Gordon Ltd. on Friday 24 February 2023.
“The administrators are continuing to carry out their statutory obligations and further information will be made available in due course.”
It comes little over 12 months since the sales wing of the London agency was siphoned off and sold to its own chief executive by Foxtons, which had purchased the company a year before but only chose to integrate its lettings department.
A statement to shareholders at the time said: "The D&G sales business is being disposed of for nominal consideration to its current chief executive James Evans.
“Cash of £3.7m will be left in the business to cover working capital requirements and retained liabilities, which would otherwise have had to be incurred by the group.
“Under the terms of the disposal, D&G will operate under restrictive covenants which protect the lettings book assets retained by Foxtons, including existing customer contracts and relationships, and the employees that are transferring to Foxtons."
There has not been a long enough period for the Douglas & Gordon sales brand to file accounts so its financial situation is unclear.
Evans has been asked for comment.