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Home of Choice enters administration

Earlier this week (26 April), Home of Choice announced it was still in talks with a potential buyer - despite hopes the deal would have been completed a week earlier.

In an update the network revealed that it was in final negotiations with an investor to acquire the business.

In a statment issued moments ago, Home of Choice said: "It is with enormous regret that the board of Home of Choice (HOC) announces that it has filed with the High Court a notice of its intention to appoint administrators.

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"Over the past few months we have been working towards selling the company. We believed that having a fresh injection of capital would allow HOC to enhance broker services and grow the business.

"We were delighted that several offers were made to purchase the company during this process and a preferred bidder was identified.

"We were convinced by assurances from an investor and our bank, that broker and staff payments, although delayed, could be made on Monday (26 April). Although the FSA granted a change of control to the investor (Thursday 22 April), talks collapsed at the last moment.

"This week we have continued talks for the sale of the company with other investors.

"However, we have not been able to secure an extension of our overdraft facility to cover the payment due to brokers and staff.

"Despite working our way through 2009 and placing the business in a position to be bought by a number of financial services groups, it has been impossible to complete the arrangements. Given our fiduciary duties as directors we must take the step of giving notice of our intention to appoint administrators.

"We currently await the appointment of an administrator, likely to be announced later today, and we will work with them to ensure the best possible outcome for brokers and staff.

"We would like to take this opportunity to thank those advisers and staff who have expressed support for Home of Choice throughout the past five years and assure you we will do whatever we can to assist the administration process."