Chris Ollerenshaw, chairman of the Black & White Group, confirmed that the firm was in the hands of administrators as of Friday 15 February and any business currently in the pipeline would now be referred to the administrators.
The news followed just two weeks after Black & White – founded by Ollerenshaw in 1990 – exited the regulated mortgage market, but vowed to continue with non-regulated business, such as secured loans and commercial lending, and its lead generation and packaging arms.
It was known that the global liquidity crisis had hit Black & White’s business hard, with a quarter of its staff made redundant in October 2007. The firm also faced a surprise visit and investigation by the Financial Services Authority in November 2007.
However, the broker was adamant that the investigation was not a factor in the decision and said it was based on economics. After its exit from regulated work, the group’s chief executive, Thomas Reeh, also resigned.
Prior to entering administration, Black & White still employed in excess of 150 people
Ollerenshaw said: “The Black & White company is in the process of winding down its business practices and dealing with administrators.
"We are not running away from responsibility and there is some tying up to do. The situation has changed because I’m ready for a rest and want some time out to consider my options. The FSA was a catalyst in this and it hampered the business.”
Alex Murray, group director of mortgages at Thinc, commented “The appetite for risk is so low that people that have built their business model on the adverse side will have to diversify or die.
"The closing of Black & White happened very quickly, but the business was so built around the market that it was going to be hard to continue.”
