Shropshire estate agents Barbers has become the latest victim of the credit crunch, closing four of its offices with the loss of 60 jobs.Staff from Barbers Estate Agents were yesterday called into an emergency meeting where they were told the administrators had been called in.
Administrators Begbies Traynor said the offices which would be closed were in Shrewsbury town centre, Newport, Stafford and Telford Town Centre.
However, the Birmingham-based administration company said those in Whitchurch, Wellington, Market Drayton and the head office at Shrewsbury Business Park would remain open.
Begbies Traynor was appointed yesterday. No-one from Barbers was today available for comment.
John Kelly, from the administrators, today said the announcement affected the business of residential sales, lettings and commercial sales.
But he said Barbers Auction, which looks after the livestock market in Market Drayton, was a separate business and was not affected. He said: “Obviously Barbers is a very long established agency but it expanded very rapidly in the better years.
“Obviously as a result of which in the current climate, it has run into cash difficulties which has culminated in our appointment.
“Having said that, because they have been there for a long time and have a variety of different assets, we are reasonably confident we will be able to find a buyer for part, if not the whole, of it.
“We have had to make redundancies and close some of the operations. The ones we have closed are Shrewsbury, Newport, Stafford and Telford Town Centre locations.
“They are closed but having said that if we can act quickly and find a buyer, they could be reopened if we are able to find someone interested in operating from these locations.
“There have been about 60 redundancies, which is about two-thirds of the staff. Staff were told yesterday.”
Mr Kelly said they were today trying to keep the business going as normally as possible. He said customers from places where offices had closed would be looked after by other areas.
By Rebecca Lawrence
13 Comments
Its very sad for all those members of staff who will lose jobs however the estate agents business has for a long time been far too greedy in its approach to dealing with selling and buying clients perhaps this will reduce the high fee’s which estate agents charge in future
You could say they’ve got the chop.
Well, we know that estate agents haven’t had it easy for a while and to say that their fees are too high is unfair. They need to survive the credit crunch just like every one else, hopefully the goverment will see this a time to act and do something with the mortgages to help first time buyers move the bottom of the chain, and this will no doubt help the market move again.
I am sorry to see the staff at Newport lose their jobs as in the time we have being dealing with them we nave found them to be very professional. I hope you all find new opportunities soon.
unfortunately the liklihood is that the management @ Barbers had to too easy in the boom of 05/06 & didnt consider that the houses might not continue to sell at the rate they did….
shame that barbers is likely to disappear after having been prominent in Shropshire for such a long time. and a real shame for the staff who will be loosing out as a result of this mess.
Barbers charge modest, fair fees and are an efficient firm. If a firm of Barber’s calibre is in trouble then the country is in a very bad way indeed.
house prices are set to rise next year and combined with more mortgages being available, i see green shoots of recovery around the corner
It’s a shame for all the people who have lost their jobs. I hope this helps the government to see how damaging the ‘HIPS’ packs are to the industry, especially when coupled with the general downturn in the economy.
Don’t see what HIPS have to do with anything here?!
We have dealt with Barbers on numerous occasions over the years and have always been treated fairly. It is sad to see that they have run into difficulties and hope a buyer is found to take it over.
High fees! Sales commission in Spain and USA is 6% on residential house sales.Like everything else, businesses survive or go under by efficiency and supply and demand! Don’t hold your breathe - there will be more……..
I work for another estate agents and am very sorry to see what has happened to Barbers. They are a very professional company. We are holding on by the skin of our teeth. No redundancies, as yet, but people leaving are not being replaced.
I can assure you that, although obviously not the only factor by far, the HIPS fiasco has had a devastating effect on the housing market. I have yet to meet any one in the estate agency business, solicitors or buyers/sellers who would tell you any different.
Best wishes to all Barbers’ staff.
We worked till the day before pay day and were told to be Head Office in Shrewsbury for 4.30pm. We waited in an office for a further lifetime to be told we had no job to go to and no pay. Thank you to the Partners.