Yesterday Towergate Partnerships Limited announced that TFS had been “scaled back” and folded into a division of TPL.
But Money Marketing can reveal that the firms’ board placed TFS into administration. It is understood that Towergate Underwriting Limited, owned by Towergate Partnerships Limited, bought the IFA firms owned by TFS back from Grant Thornton, allowing them to continue operating.
TFS chief executive Ian Darby and finance director Andrew Doyle are working with TPL chairman Peter Cullum and chief executive Andy Homer over the next month to put together a new business plan for the financial services division.
It was thought that a management buyout was being considered as an option if Towergate does not accept the revised business plan. However Towergate says that an MBO is no longer on the cards.
TFS was established in Jan 2008 as a separate company to consolidate regional IFAs and in July last year the firm had raised £100m to make 20 acquisitions by the end of the year. TFS made 10 acquisitions since its launch.