Purplebricks’ share price has hit its lowest-ever level following the announcement of plans to cut jobs across the business.
The online estate agency, which last month announced plans to reboot its controversial ‘commisery’ campaign urging vendors not to instruct commission-based estate agents, saw trading close on Friday with its share price falling to just 13p – an all-time record low.
The company has seen its share price fall as pressure continues to mount on the firm followings its recent woes.
The troubled online estate agency replaced its finance director last week just days after it warned of job losses to improve its financial performance.
Steve Long will leave his role as chief financial officer on 1 November, less than a year after taking the position at the firm.
It is the latest in a string of boardroom changes at Purplebricks which is under fire from an activist investor over its rapid cash burn and a steep fall in its share price.
Regulatory failings have also had an adverse impact on the company, contributing to recent decline. Shares in the AIM-listed firm have dropped 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, with recent regulatory failings contributing to that decline. The significant fall in the firm’s share price has caused many investors to sell up, concerned that Purplebricks might be vulnerable to a takeover.
EYE revealed in November last year that Purplebricks had failed to properly serve legally required documents to tenants explaining their deposits have been put into a national protection scheme.
Purplebricks, which is currently being investigated by Propertymark for potential tenancy law breaches, sprung a major surprise yesterday when the online estate agency announced plans to relaunch its controversial and highly unpopular ‘commisery’ campaign that caused industry anger six years ago.
The new adverts call for vendors to instruct Purplebricks rather than a traditional high-street estate agency that only charges sellers commission if they successful complete on a property deal.
The national TV and Radio spots parody the traditional estate agent pitch, showing how the joy felt on completion can suddenly turn to commisery for spending more than Purplebricks would charge.
This claim made by the online agency comes despite a decision in July to increase its pricing and scrap its money back guarantee.
EYE NEWSFLASH: Purplebricks to make redundancies ‘across the organisation’
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