A number of Countrywide branches have been forced to close their doors for good this year, while other offices have delayed reopening following the first coronavirus lockdown, as the company faces a fresh financial crisis.
With serious financial burdens, and it would appear not enough income, Countrywide has seen some big closures over the past few months, while other shops remain temporarily closed, but may not reopen.
“We are having to operate a skeleton service across some branches at the moment with a number of shops unlikely to reopen following the spring lockdown,” a Countrywide agent said yesterday.
Countrywide last month announced plans to raise £165m, as part of an attempt to restructure its existing debt in order to reduce its debt burden and exposure to creditors, while yesterday it confirmed that Connells had made a move to potentially buy the struggling firm. Countrywide shares increased sharply on the back of the news.
Countrywide issued a statement yesterday morning announcing that it had received an indicative approach from Connells at 250p a share in cash, which would take it back into private ownership.
Connells also issued a statement confirming that it had indeed made an indicative approach to Countrywide in relation to a possible all-cash offer for the company, which is under threat of administration.
The statement from Connells said: “The board of Countrywide has indicated that Countrywide is in urgent need of recapitalisation to reduce its net debt and lessen its exposure to its lenders.
“The board of Countrywide believes that, in the absence of a recapitalisation, Countrywide is unlikely to be able to execute its business strategy over the short and medium term and there is a risk that it could end up in administration, with Countrywide shareholders losing all or a substantial portion of their investment.”
The statement also said that in Connells’ view “Countrywide needs a new management team, with real estate agency expertise, and a new strategy to turnaround the business”, which largely explains why so many of the branches closed by Countrywide earlier this year are unlikely to reopen, while plenty of others are also likely to shut up shop.
The list of branches closed in 2020:
Abbotts, Hellesdon, Norwich
Abbotts, Barkingside, Ilford
Abbotts, Taverham, Norwich
Abbotts, Swaffham
Abbotts, Halesworth
Abbotts, Norwich (Thorpe St Andrew)
Austin & Wyatt, Southsea
Austin & Wyatt, Fareham
Austin & Wyatt, Park Gate, Southampton
Bairstow Eves, Waltham Cross
Bairstow Eves, Northolt Bairstow Eves, Ravenshead, Nottingham
Bairstow Eves, Great Barr, Birmingham
Bairstow Eves, Chadwell Heath, Romford
Bairstow Eves, Benfleet
Bairstow Eves, Waltham Cross
Beresford Adams, Ruthin
Beresford Adams, Conwy
Beresford Adams, Abergele
Bridgfords, Prestbury, Macclesfield
Bridgfords, Hyde
Bridgfords, Wilmslow
Carson & Co, Hook
Carson & Co, Fleet
Chappell & Matthews, Thornbury, Bristol
Clive Watkin, Bebington, Birkenhead
Clive Watkin, Willaston, Neston
Dixons, Sheldon, Birmingham
Dixons, Burntwood
Dixons, Hodge Hill, Birmingham
Dixons, Stourbridge
Entwistle Green, Rawtenstall
Entwistle Green, Runcorn
Frank Innes, Radcliffe-On-Trent,
Frank Innes, Beeston, Nottingham
Fulfords, Teignmouth
Fulfords, Seaton
Fulfords, Sidmouth
Fulfords, Budleigh Salterton
Geering and Colyer, Faversham
John Francis, Morriston, Swansea
King & Chasemore, Felpham, Bognor Regis
King & Chasemore, Newhaven, Eastbourne
King & Chasemore, Crawley Down
Palmer Snell, Bridgwater
Palmer Snell, Bridport
Palmer Snell, Winton
Palmer Snell, Somerton
Palmer Snell, Wincanton,
Spencers, Hinckley
Spencers, Market Harborough,
Taylors, Hemel Hempstead
Taylors, Brackley
Taylors, Hemel Hempstead
Taylors, Patchway
Taylors, Wellingborough
Comments (23)
It is a shame so many branches have closed. I worked for Countrywide a few years ago in one of the listed branch that have now closed and the staff within the branches have always tried to do the best they can. I know of at least 5 other branches not on that list that have also closed. The Woods brand for example, have closed their offices apart from one. Will be good if Connells can take over the business as they will turn things around for many of the good employees working within the business.
If the authorities poses any problem they can simply jettison a couple of the brands
However many regions towns where Connells aren’t represented so simply filling in a few gaps
I think this is a fantastic deal for Connells and makes perfect sense
Very little noise from those that run the brands You would have thought someone would have an opinion to offer over future direction or are they too much salary men / women just toeing the party line
Good point HOW71-not seen any known “CWD” posters on here or anywhere-silence is deafening.
Countrywide is what happens when you put non estate agency people in charge. There’s a reason why Connells/Sequence manages to stay ahead of the game, they are run by estate agents.
Also they are not adverse to have different brands operating in the same locations
Say what you will of CWD but they were never afraid of having competing brands in the same location, even next door to each other!
You could argue they did it too often!!
Thats strange as there only appears to be one estate agent on the board.
Ex FS account for 3 of the board.
You will note the past tense ‘were’, by which I meant before this board. Some very successful and profitable CWD offices thrived in competition with each other its the current regime (where there are few agents on the board) that have started culling branches in shared locations.
Whilst sad for the individual staff, some of whom will have chosen redundancy, others redeployment, I am not sure that Countrywide closing serial loss making businesses is quite the horror story you seem to be making out. An independent agent wouldn’t continue to bankroll a branch that continually lost money, so why would a corporate.
Given their profitable trading position, the bumper last few months, and the level of interested bidders, maybe this story needs a re write with a more objective angle.
If the offer is accepted will the Competition Commission take a look at it and insist on yet more offices closing?
Not offices. In terms of agency marketshare they’d be at what 10% which is too low to trigger competition issues. Google has 90% of the search market! The issue for the CMA would be to look at surveying.
Good point, I guess it will inevitably mean offices closing where there are 2 or more competing offices nearby and they can get out of the lease on one of them easily enough.
Over 50 branches closed already this year.
I feel sorry for the staff, I know from personal experience a number on that list are good profitable branches.
One of the biggest issues CW has right now and has been for the last 5 years is recruitment.
They have not been able to recruit or retain experienced staff.
Why would any decent agent want to work for them?
No one closes profit making businesses, that makes no sense. You can bet your bottom dollar that these were loss makers, and serial ones at that.
I know at least two on that list that are good profitable offices that have been absorbed by branches close by.
I can also see names on that list that have been re-branded rather than closed, I work for CW, they have been brilliant to me since I re-joined in 2019. Also, some of those branches probably have come to end of their very expensive leases, surely a company that decides to re-brand and merge some offices for the better is one to work for? Have CW got it wrong in the past, yes is the answer, there are a lot of hardworking staff who are loyal that shouldn’t be tarnished with poor choices of the over paid board members.
Problem with these property news sites is that they don’t fully check their information.. Fake News comes to mind, it wouldn’t get the traction if the story was this “CW group is being chased by three potential new owners”
Always two sides to a story, from personal experience I have been treated well and fairly, my direct management have spoken to us about all the rumors, administration isn’t being spoken about. I am also educated enough to know that most large PLC’s will struggle at some point in the coming months!!
Yes I saw they were running a massive recruitment campaign earlier in the year uk-wide, seem to be all over the job boards.
Maybe they are moving towards the hub model? Have any staff been made redundant? Maybe one of them can tell us
That list is not all of them, for example 2 of there woods brand in bristol have closed since the summer
Agreed. Less than half the actual number apparently. In a story quoting an anonymous source which was posted by PIE on the 27th October said source claimed that they had 610 Branches remaining. A fact check of their 2019 annual accounts showed 731 Branches were trading at year end. If the anonymous source is to be believed therefore simple maths gives the actual figure to be a staggering 121 so far and probably counting. So a nice list of Branches but not the full story. A complete detailed list would have been a lot more informative but I guess CWD are not willing to provide that which may show just how much trouble there is at the mill which is yet to surface I suspect. Something doesn’t sit right here.
Whilst it’s a shame to see branches like this closing, it’s long overdue. If CWD had bitten the bullet and closed 50% of their branches two or three years ago it may have had a different ending.
Which is sort of cutting off your nose to spite your face because only 5-6 years ago most of these branches would have been profitable and helping the group. The ‘leadership’ of Platt that saw a huge brain drain from the business and the chuckle brothers Long and Creffield have run a good business with good people in to the ground.
“Lions led by Donkeys”
It’s mind blowing to see the impact of a non-estate agency board of directors. I didn’t think they could or would make such a hash if it. It didn’t seem possible a few years ago.
Agreed but if you break it down to the idea of agency as retail as Ms Platt believed then you can see where the cracks appear. In her world all customers are equal and you treat them all the same. However that can’t always be the case in agency as the law dictates that we have to act in the best interests of the vendor so that means you can’t always treat everyone the same. As I understand it Ms Platt was having none of this and that is when a number of senior people at CWD knew the writing was on the wall and jumped or were allowed to be pushed for fear of the car crash looming.
“However, it also revealed that Countrywide is facing the threat of administration.”
…. “as the company faces a fresh financial crisis.”
No change there then .However the banks are likely to have more pressing problems elsewhere than a company which is trading profitably having just enjoyed a bumper month in October and closing down underperforming branches
This rhetoric purely to fan the flames of the gift wrapped deal by the”rescuers” Alchemyy
That firmly kicked into touch by the arrival of Connells who might not be the only player
Some stories do have a happy ending !