From crisis to crisis, Purplebriks have been prone to value destruction

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It’s also another major setback for the prospects of a generation of online startups that have threatened to overturn real estate agents with old bricks and mortar.

Emoov was forced to pull out despite the triple rescue merger with Sarah Penny Tepilo and Urban.co.uk. Collins, one of the UK’s largest traditional dealerships, closed the Hatched web venture just two years after its acquisition, and shares in Rightmove-Challenger Onthemarket are one-third below its flotation price after repeated financial challenges.

Purplebriks also had to calculate the cost of a failed expansion into the US and Australia, which led to co-founder and president Michael Bruce’s exit in 2019.

There is a list of questions that Chairman Paul Pindar and CEO Vic Darvey are asking to answer the latest gaffe, not least whether the sudden departure of CFO Andy Botha in October is related.

Botha left after just 18 months in the position without giving a reason, and according to the Financial Times, Head of Rentals, Helen Ogden, left this month after less than a year, so how long has the company known about this problem? Given the delays in the accounts, were Deloitte auditors fully aware of the episode? Furthermore, how did the company fall back on something so basic?

The rest of the council members cannot escape scrutiny. Although Chief Audit Officer Elona Mortimer-Zhika was appointed only in September 2020, she is a qualified chartered accountant, and she once told Accountancy Age: “Accountants are the best advisors you can get on the table.”

It’s also embarrassing for Stephanie Caspar, who serves as the eyes and ears of lead investor Axel Springer, as the German media giant battles embarrassing allegations of turning a blind eye to sexual misconduct in a leading tabloid headline Bild.

With only six members, the board of directors is weak and lacks independence as well. Pindar was also early supportive so he left at least two independent directors, according to Purplebriks’ own website.

However, the fate of Purplebriks and many of its competitors is an intriguing one. On the face of it, online real estate agents should have been paying out an open door. The old genre has a terrible reputation but is somehow a sector that is beginning to appear somewhat impervious to digital disruption.

There is probably more to be said for intimate local knowledge than expected. The personal touch may have been underestimated, too. Or should the regulator do more to break the stranglehold that some agents are placing on the domestic market?

Upcoming CFO Steve Long must be wondering what he let himself in for.

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