Tue, 10 Nov 2020 | ADMINISTRATION
A number of branches of the Countrywide estate agency chain have been forced to close their doors permanently as the company battles to avoid entering administration.
The group is facing difficult financial times as a result of the coronavirus pandemic. which has already forced some Countrywide branches to delay reopening.
"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 spokesperson said.
Last month the firm announced plans to raise £165m in an attempt to restructure existing debt. However, it confirmed this week that Connells had signalled their intention to put forward a bid should the group enter administration.
A statement from Countrywide revealed Connells has offered an indicative approach at 250p a share in cash, which would take the chain back to private ownership.
Commenting on the offer, a statement from Connells revealed that it felt the business needed a new management team and strategy to help it turn around.
"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."
"Connells will assess the making of any firm offer for Countrywide in light of the current difficult market conditions, its due diligence findings, the level of additional investment that will be needed by Countrywide and the extent of the turnaround required in the business."
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