In a statement today, the mortgage network reveals that it will have to appoint administrators after it could not secure an extension of overdraft facilities and an acquisition deal fell through at the last moment.
The statement says: “It is with enormous regret that the board of Home of Choice announces that it has filed with the High Court a notice of its intention to appoint administrators.
“Over the past few months we have been working towards selling the company. We believed that having a fresh injection of capital would allow HOC to enhance broker services and grow the business. We were delighted that several offers were made to purchase the company during this process and a preferred bidder was identified.
“We were convinced by assurances from an investor and our bank, that broker and staff payments, although delayed, could be made on Monday April 26. Although the FSA granted a change of control to the investor on Thursday April 22, talks collapsed at the last moment.
“This week we have continued talks for the sale of the company with other investors.
“However, we have not been able to secure an extension of our overdraft facility to cover the payment due to brokers and staff.
“Despite working our way through 2009 and placing the business in a position to be bought by a number of financial services groups, it has been impossible to complete the arrangements.”
The network says an administrator will be announced later today and it says it will work with them to ensure the best possible outcome for brokers and staff.