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Towergate bought Charcol out of administration

Towergate Financial has revealed it bought John Charcol after the mortgage broker went into administration last week.

Towergate revealed earlier today that it had acquired John Charcol but chief executive Ian Darby has since revealed that he was contacted with the offer last week by administrators Grant Thornton.

Darby says the firm, which had debts of £7m according to its last annual report, was moved over to Towergate last night. It has bought the whole firm, including its 100 plus staff, customer base, London office and brand. Darby says it will continue to operate under the John Charcol brand: “the structure of the business is fit for purpose,” he says.

Towergate says it will also take on all of John Charcol’s liabilities as part of buying the customer book.

Darby says the John Charcol business is still fully operational and was chosen because it is a “retail distribution review friendly” set-up that “fits within the Towergate family” and will present cross-selling opportunities for the insurance business. He says the managment of the firm will not change but new non-executive directors will be appointed.

Darby admitted that Charcol’s single-tie protection deal with Legal & General will be assessed “very quickly” but could not confirm whether it would be severing the deal.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Did Towergate buy John Charcol2010 or the old John Charcol – who might have sold the trade assets and goodwill to 2010, that was then bought as a clean company by Towergate?

  2. Well as suspected the business was dead and Towergate want the client database….. though I believe that the Self employed consultants own their databases and previous clients from under B&B days are owned by B&B….. oh dear oh dear!!!

  3. Same old consolidation for the ‘boys’ at a price that i would assumes bears no relation to the value obtained by the ‘purchaser’.

  4. Come on Ladies and Gents, this is a positive step for a completely battered industry.

    Peoples jobs have been saved, this is GOOD!

    John Charcol is known nationwide as a “Mortgage Broker” – the more people that are aware this profession still exists the better, I bet half the country think the broker is extinct.

    People should be praising Towergate not moaning and groaning.

    Smart move Towergate team, congratulations.

    Lee Birkett
    CEO TrumpoMatrix.com

  5. Went into administration last week. Sold to Towergate last night? These Grant Thornton people are really slick. Was the business offered to anyone else? It`s not only the quick step but also the soft shoe shuffle. This deal must have been brokered months ago so who is getting shafted? My monies on HMRC, poor dears.

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