Humberts estate agency in administration

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by Kay Murchie

Earlier this week, Humberts the estate agency chain entered administration but has now been bought out by a business restructuring group.

Humberts has sold certain assets to Mercantile Group for total net consideration of £3.16 million (including cancelled deferred consideration amounting to £1.1m).

Smith & Williamson, the accountancy and financial advisory group, has been appointed by the directors of Humberts Limited, one of the Company’s trading subsidiaries.

Smith & Williamson will act in the restructuring and administration of Humberts Limited (and certain subsidiaries of Humberts Limited).

Mercantile Group owns assets globally, including a substantial UK property portfolio. Furthermore, it owns 50% of Chestertons estate agents, which it owns jointly with Concensus Group, a considerable shareholder of Humberts Group Plc.

As well as 10 franchises, Mercantile has bought 34 branches which were part of the original Humberts group. It has also purchased Farleys and Wellingtons estate agencies, which are going concerns and were not part of the administration, as well the Humberts name.

This leaves 14 of the 80 Humberts branches that were not part of the deal. Discussions are currently taking place to sell these.

Commenting on the announcement, newly appointed executive chairman John McLean, said following discussions with several parties, we have successfully concluded the sale of assets which has secured value for the Company whilst successfully securing continuity of employment for the majority of the Company’s employees.

We have tried to minimise the disruption to everyone involved throughout this difficult process and despite the very difficult conditions I am pleased that we have managed to secure the greater number of jobs across the group.

Back in April, Humberts, which is one of England’s largest chain of estate agents, had its shares suspended on AIM pending clarification of its financial viability.

In a statement to the Stock Exchange, the group said the request to suspend its shares was made pending clarification of its financial position and added that it was investigating a potential restructuring.

Earlier this year, shares in the company crashed by more than 40% after warning that it will slump to a loss in the first half of the year as the housing market slows.

In related news, Movewithus, the biggest network of independent estate agencies, said of the estimated 12,000 agents, at least 4,000 will close by next year.

The UK’s largest estate agency group, Countrywide, which incorporates Bairstow Eves, Gascoigne-Pees and RA Bennett & Partners, has closed 50 branches so far this year and is planning more cost-cutting.