A former high street agent whose firm went into liquidation in August, owing £70,000 to creditors, has launched a new ‘virtual’ business – and vowed to pay off all his debts, including to staff.

Ian Southall, who has worked in agency around Tewskesbury, Gloucester, since the 1980s, put Chess Moves into voluntary liquidation after 16 years in August.

A statement of affairs filed at Companies House by the liquidator shows £69,369 is owed to creditors, including £10,182 to HMRC and £35,971 to staff.

The document shows there are £50,911 of assets available to creditors, with an £18,559 deficiency.

Southall, who now trades as Ian Southall Property Professional which operates on a no sale, no fee basis, told EYE he is confident all debts will be repaid.

He said: “All the debts should be paid off from proceeds of sales that were still going through, all exchanged but not all completed yet, from before we ceased trading.”

The new firm is part of the Property Ombudsman, of which Chess Moves was previously a member, and Southall said he is liable for any claims for both his new and former firm.

He said: “Chess Moves was both part of the Property Ombudsman and the Guild of Property Professionals.

“When I moved forward with my new venture I signed the clause that covers both my new virtual office and any possible claims regarding Chess Moves to the satisfaction of the Ombudsman.”

Southall now explains on his website that competition from online firms has driven down fees for traditional agents, which has to have a detrimental effect on service levels, and now claims to be part of a growing breed of firms that can continue on a ‘no sale no fee’ basis without the need of a traditional office.

He said: “Operating on a ‘no sale no fee’ basis keeps the incentive fully placed in my court to get the results. I also intend to keep the operation as ‘personal’ as possible, as I grow, diverting funds to marketing rather than physical premises and excess staffing levels.

“I am gradually building up my brand awareness strategy moving forward. I’ve worked in the area as an agent for many years and I’m fortunate to have built up a respected reputation.”

Southall said properties are currently marketed via Rightmove, local media, social media and For Sale boards.

He currently has five properties listed on Rightmove, based around Gloucester, four of which are under offer, but said he is confident of getting more on his books.

Southall said: “My new business is totally stand-alone and will build up, providing adequate income moving forward. I’m a proactive guy, so fresh properties will come, I’m confident of that.”