After launching in the US in 2000 following success in London, the estate agency has allegedly been hit hard by the recent non-conforming turmoil affecting the global market. It is expected to lay off 350 of its 380 staff in its offices and headquarters in New York and Connecticut and may be forced to file for bankruptcy.
The company entered the US market in March 2000 with the takeover of YourHome
Direct.com, which allowed the brand-conscious agent to move its trademark Mini Coopers into New York and surrounding areas. Foxtons was sold by founder Jon Hunt in early 2007 for £390 million, although he held a majority shareholding in the US venture as part of the sale.
Accounts from US Foxtons indicated that it had lost almost £8 million in the US in 2005 and there were fears that the collapse would affect the 4,400 homes listed in America.
Foxton’s US general counsel, John Blomquist, said: “The plain fact is that we have been battling against a real estate market that recently has turned into a sharp decline and the company no longer has the liquidity to operate.
“We understand the impact of the action we are taking; but there comes a point when you can’t stand in the way of a hurricane, and it is a property hurricane we are facing.”
Rosie Nagle, PR officer at the Foxtons press office, said that the US office was a separate company following the sale earlier this year, and would not impact on the UK business.
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