Troubled online estate agency House Network has made redundancies – one week after staff were apparently told to expect new contracts, and less than two weeks after it was bought out of administration.
A firm called Universal Acquisitions Ltd (UAL) was announced as the purchaser of House Network.
This afternoon a spokesperson for UAL said: “House Network has a great future ahead of it but needs to take some difficult decisions to ensure the firm’s long term success.
“We wanted to communicate these changes internally before announcing how we will move forwards and grow the business.”
Staff were told of their job losses in a conference call yesterday, which was followed up by an email to some 28 recipients.
A local property agent with House Network said he believes this could be all staff, after previous redundancies this year.
He identified from the list a mix of sales staff, negotiators and admin.
Yesterday’s email informed the agent that he would be paid for work up to and including yesterday, plus payment in lieu of a week’s notice.
The email also said: “The loan payment will be deducted from any money owed.”
The reference is to a loan payment notified by administrators Hudson Weir on March 28, covering February’s unpaid wages. At the time, employees were told the loan did not have to be repaid.
The notification said: “I am able to confirm that the deal is likely to complete tonight, however the administrator’s appointment will not be effective until 10am tomorrow morning.
“However, to ensure that those that chose to stay are all paid, the proposed administrator, Michelle Mill, will be making payment of your February’s wages tomorrow.
“Unfortunately, I am not holding enough funds to cover both February and March’s salary. However it is our understanding that you will receive a loan from the purchaser for March’s salary.
“These funds do not require repayment and are not subject to any condition.”
On that same date – March 28 – staff were told by Ziggy Seagroatt via email that February’s pay would be with them that night.
He thanks staff for their patience during “a stressful and difficult time for you all”. The email address was given as LDD Construction and Drilltec.
Seagroatt’s LinkedIn profile says that the companies have a combined turnover of more than £25m.
On Companies House, Marc Seagroatt has 16 director appointments including Drilltec and LDD Construction.
Yesterday, the local property agent found that his company phone had been disconnected, and asked for confirmation that staff would be paid.
The agent had been with House Network for three years, and said that at one point there were 18 agents on the ground.
He said that staff had thought their jobs were safe. He said: “Last Monday we were told to expect new contracts by Friday. However nothing materialised.”
House Network is the oldest of the UK’s online agents, incorporated in September 2003.
EYE NEWSFLASH: House Network bought after going into administration
What’s this, another Online Agency in trouble!
Once again, who’d of believed it?……………
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I just looked to see who our Hose Network Local Property Expert was, and it came up with a Bio of the lovely Graham (we’re in Cambridge).
Turns out he’s also the LPE for Derby and Lincoln too. A talented individual.
Unless, of course, he is one of three identical triplets, all called Graham?
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And Graham is one of the property agents that were unceremoniously sacked yesterday morning (along with all the others).
UA are still using all the images & names of the staff they have got rid of, as well as still displaying the name, VAT & company reg number of the company that is now in liquidation!
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Are they still using the old Trustpilot reviews too ?
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^^^^^^^ You mean like Emoov?
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To answer the above about Trustpilot -YES!!!
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Time to take the computers to offset against salary and move on…
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