A family-owned estate agency in Merseyside has called in the liquidators leaving many of its tenant, landlord and vendor clients unsure about what will happen to fees, rents and deposits handled by the company until only recently.
Called Loc8 Estate Agents Ltd and based in the town of Maghull between Liverpool and Ormskirk, liquidators are now said to be concentrating on the ‘safeguarding of rental income and tenancy deposits’.
A meeting of creditors is scheduled to take place on 30th September but the company’s most recent unaudited annual accounts for 2018 show it owed creditors over £500,000 at the end of the year with only £13,400 cash in the bank.
Estate agency insolvency
Operated by the Scott family, the business is reported to have begun insolvency proceedings voluntarily and appointed Manchester company Path Business Recovery.
According to local media reports, Loc8 fully managed 200 rental properties in the area but also handled a let-only service for more, as well as running a sales operation.
Tenants have been seen outside its premises seeking to pay their rent and it is alleged that some deposits have not been lodged correctly with a government-approved deposit protection provider.
Landlords have also been asking how they can reclaim keys to their properties, while one vendor told the Liverpool Echo that they had paid over £1,000 in selling fees upfront to the estate agency in return for a discount only a few weeks ago.