Purplebricks founder Michael Bruce plots bid to regain control of online estate agency

Michael Bruce

The founder of Purplebricks is reportedly preparing a move to regain control of the struggling online estate agency less than a fortnight after the company put itself up for sale.

Sky News reports that Michael Bruce is considering making an offer for Purplebricks, and is lining up prospective advisers to work with him.

The emergence of Bruce’s interest comes nearly four years after he quit as the company’s chief executive, and follows an announcement by Purplebricks yesterday that the firm has entered a formal sale process following takeover offers.

The online estate agency said yesterday that it had received interest from third parties, and that now appears to include Bruce, who founded the business, with his brother, Kenny, just over a decade ago.

Purplebricks has seen its valuation fall sharply over the past year, and currently has a market value of just £23m.

Bruce is believed to be looking for a new project, following the failure of his property portal Boomin, after liquidators were called in last year.

One property industry source told Sky News that there was even a possibility that Bruce could combine the Boomin technology with that of Purplebricks.

The company has been hampered by the downturn in the property market in recent months, driven by the sharp rise in mortgage rates deterring purchasers and vendors.

Purplebricks said full-year adjusted underlying loss would come in between £15m and £20m – larger than the previously expected loss of between £8.8m and £11.3m.

Regulatory failings have also had an adverse impact on the company, contributing to the fall. Shares in the AIM-listed firm have fallen from 103p at the start of January 2021, while the company floated at 95p in December 2015.

Shares in the online estate agent have plummeted since its all-time high in 2017 of 525p.

The firm’s share price closed yesterday at 8.38p

 

EYE NEWSFLASH: Purplebricks enters formal sale process following takeover offers

 

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39 Comments

  1. IheartRE

    C’mon Michael, you can do it! That’ll burn the last of your cash… Easy come easy go 😀

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    1. gtenergy

      Hi Michael Bruce,

      I will join you in buying or merging with PB, I have tried to go direct to the CEO for the last 3 months, but never had a reply, if you are interested please let me know.

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      1. gtenergy

        By the way, if any of the commenters on this blog would like their businesses to make a few million or a few hundred million, like purple bricks will make by taking just 10% of the house sale market in the UK, which they will do by jan 2024 if they accept my buy out or buy in proposal.

         

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        1. gtenergy

          By the way, if you want me to make you a few million per year by closing 1,000 home sales closures, you have to be an estate agent, that has at least 5 years experience operating an on line or high street estate agency.

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      2. NorthernAgent

        I can only assume that the negotiator in charge of that role is not in the office and they’ll have to call you back.

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        1. gtenergy

          Ok, does one assume all of my comments are being looked at?

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          1. NorthernAgent

            On this post yes, Purplebricks don’t exactly have the best track record with contacting people back. Hence the joke.

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            1. gtenergy

              I am not referring to answers by purple bricks, but by the commenters on this blog, or are my comments being blocked?

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              1. gtenergy

                if my comments are being blocked, please list every word that is being blocked?

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  2. Ric

    OTM should buy it… Prop tech and all that – I vote “Yes” a

    All in favour…

    OTM buy PB – Thumbs up.

    OTM doesn’t buy PB – Thumbs down.

    or

    OTM could just suggest they are looking at it closely in a press release to see what happens to both PB & OTM share prices.

    PS Elon, buys it and shuts it down.

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  3. forwardthinker

    Life moves in circles, but PB needs an overhaul something completely  different

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  4. 0racle

    I needed a laugh this morning….

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  5. Scottish_Mist42

    Thought he might…..

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  6. jan-byers

    He has made far more money than anyone on this forum I imagine

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    1. IheartRE

      Actually, Jan, there’s a few of us here that eclipse Michael Bruce.

      Although, I do suspect he’s made far more than you…

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      1. NorthernAgent

        But Jan’s a developer don’t you know, surely she’s made tens of millions.

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        1. Eagle60

          Can’t you all just focus on your own businesses like Jan does? And not comment on every Purplebricks post like … oh … nevermind.

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          1. jan-byers

            I have a look to laugh at the whingers to be honest

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        2. jan-byers

          I do more than ok thanks

          What I do not do is constantly whine and cry about how unfair the competition is

          I would not use PB but I find the constant whining hilarious

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      2. jan-byers

        LOL

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    2. Ric

      What’s it like in there?

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  7. HIT MAN

    I remember all them agents that backed Boomin its now time for the Bruces pay you all back with more undercutting.

     

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  8. HIT MAN

    Rightmove are making their offer!  

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  9. Epicurus

    So having tried to woo agents with Boomin he is now looking to go back to the Commisery pitch……

     

    Leopard.spots.

     

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  10. Andy Keogh

    Good luck to him if he can make it work give it a go, I never understood why people are so bothered by PB there still 95% of the market to go for its like Tesco worrying about my local shop.

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  11. WITMM

    This could be a case of being careful what you wish for or at least, careful what you take the pee out of!

    If Bruce comes in with new investment and different management, there is the possibility and licence to change existing practices.

    What if they decide that the upfront fee hadn’t worked and there revert to a more traditional business model?  Based on last year’s figures, they could go from £70m in revenue to £84m (average house price x 1.3% x 50% listings sold).

    What if they use some of the £47m reserves to open in all 47 county capitals or buy existing agencies and rebrand?  High street opportunities are plentiful, most towns and cities have empty shop fronts and there’s bound to be an agent or two looking to retire.

    Straight away you take out two key objections and PB would have the opportunity to then advertise on the three main portals.  There would be a raft of marketing opportunities to support a change of heart.  They would still be able to position themselves as a technology lead business with the added advantage of an existing, traditional estate agent.

    Good or bad, they’ve found a way into the public psyche and at the very least are part of the home-moving conversation.

    The figures could be higher as 40,141 paid instructions don’t give any indication of how many appraisals they do and what their instruction ratios are.  With a new No Sale – No Fee approach combined with brand awareness you could get close to the reality of what would happen if Right Move became an estate agent.

    It’s a scary thought but you could easily imagine a shiny new Purple Bricks office coming to a High Street near you…

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    1. gtenergy

      Hi

      why are you commenting on this subject, what interest is it to your self or your business, please take a look at my comments on this subject

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      1. NorthernAgent

        I’m struggling to work out if this is a parody account or a real person. gtenergy are you reading anything you’re posting?

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        1. gtenergy

          I am writing it so I must be reading it, what is wrong with my comments?, as they do not defame an individual or entity nor bring them into disrepute. It must not promote a business or contain hyperlinks to other websites

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          1. NorthernAgent

            You’ve just said someone can’t comment and then said to look at your comments.

             

            If you are interested in buying Purplebricks as your previous comments suggest then your mentality will fit right in with their reputation.

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  12. AcornsRNuts

    Has he launched a crowdfunding appeal yet? After all he wouldn’t risk his own money surely?

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    1. gtenergy

      on what grounds are you making this remark?, as who or what business

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  13. conoco9

    One day this saga will be turned into a film. Which genre though? Comedy or Horror??

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  14. Howard Star

    you could not make this **** up

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  15. jan-byers

    I do more than ok thanks

    What I do not do is constantly whine and cry about how unfair the competition is

    I would not use PB but I find the constant whining hilarious

    In the meantime you toddle along and carry on with your low skilled admin job

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    1. EGIL

      Keyboard warrior

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  16. JVSOZ

    Jan, I think this might be you?

    A bad real estate developer is someone who engages in unethical or illegal practices in order to cut corners and maximize their profits. This could include things like using substandard materials or cutting corners on construction in order to save money, ignoring building codes or safety regulations, or engaging in fraudulent or predatory practices such as misrepresenting the value or potential of a property. A bad real estate developer may also exploit vulnerable populations or engage in discriminatory practices in order to acquire property or maximize their profits. Ultimately, a bad real estate developer prioritizes their own financial gain over the well-being and needs of the community and individuals affected by their actions. It’s important to be aware of these potential risks when engaging in real estate transactions and to thoroughly research developers and companies before investing in or working with them.

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    1. IheartRE

      That describes a sociopathic developer which might be a bit harsh, I think Jan’s just not a terribly bright person in general.

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  17. paternalpole

    So after trying to lure the agents with Boomin, he  now plans to return to the commissar realm… https://krunkerio.io

    Report
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