Strike chief executive Sam Mitchell has said he is looking forward to building a “new force” in the property industry after it was revealed yesterday that the online agency had sealed an agreement to purchase beleaguered brand Purplebricks.
The sale, for a consideration of £1, includes transferring Purplebricks business, assets and all of its liabilities to Strike Limited.
It brings an end to Purplebricks’ formal sale process and strategic review and will also see chief executive Helena Marston and the majority of the board resign once the deal completes.
Speaking to Estate Agent Today, Mitchell said in agency terms, the companies have exchanged but not yet completed so there was still much to be decided.
Asked if one brand could be subsumed into the other, he said this was a possibility but nothing has been decided.
He said both brands will be run separately in the early days and declined to comment on any changes to Purplebricks' fee model given that Strike doesn't charge vendors for listings.
Estate Agent Today also queried how Strike would manage its own and Purplebricks level of debt.
He said: "It is clear we have sophisticated investors prepared to invest significant sums to get it right.
"These are long term investments."
Strike said he and the brand's "patient" backers through Sir Charles Dunstone's Freston Ventures are convinced that there will be mass adoption of online agents, especially since much of the world has gone digital in recent years.
Mitchell said he was a long-time admirer of Purpebricks.
He said: “I’ve worked in the property industry for 20 years and I have never seen a brand burst onto the scene and disrupt the market like Purplebricks.
“I’ve been a huge fan of the brand and its original disruptive ambitions for many years. The brand is now a household name across the UK and we are looking forward to harnessing its original entrepreneurial spirit as we grow together over the years ahead.
“By combining the key strengths of Purplebricks and Strike, we will develop a stronger technology-led model that gives customers a much better experience at a much lower cost. We look forward to working with the Purplebricks team as we build a new force in the property industry.”
The Purplebricks share price hit a record low of 0.60p during trading yesterday and closed down 43% at 0.75p
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The very fact that they think bringing Purplebricks into there fold will help fix their fortunes is a massive concern.
Oh my goodness!! “Convinced that there will be mass adoption of online agents” This is wing and a prayer stuff not based on any kind of research or any idea of what people really want/need when dealing with their biggest ever lifetime investment! It’s not like doing your groceries online, or even buying a car. This is a 3 - 6 month process that is daunting and complicated and if you get it wrong will cost you thousands of pounds. I am truly flabbergasted that intelligent people actually think this is a good investment. It just looks like a buy it and break it up for personal profit step. If not then God help the investors!!
Entrepreneurial spirit...boosting business?! That's the funniest headline I've seen in a while.
I think that spirit left as Bruce shut the back door after cashing in his shares at the firm's peak. He must've known the writing was on the wall and didn't see it as a boomin' venture anymore.
The situation is so similar to Tepilo with its amalgamation. The only believers in the online model are those already in it. Bon chance!
Perhaps rather than the lofty goal of ' build a new force in the property industry.' Sam and his team should take the baby steps of learning to build a sustainable business that produces a profit, without relying on the pockets of investors.
The worst agent I’d come across was Purplebricks until Strike came along. Other agents doing all their work for them, particularly in sales progression. God help us all!!
You just can't make this up can you
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