Estate agent Mellor bought out of insolvency

NORTH West estate agency chain Edward Mellor has been bought out of administration, it emerged today.

Mellor’s parent company, Explora Solutions, has been sold by administrator Beever and Struthers to a new company led by former director Colin Mellor. The insolvency, which occurred last week, follows the collapse of the housing market over the last 18 months.

The sale means eight out of 15 branches will survive and 60 out of 80 jobs will be saved.

Charles MacMillan, partner and head of corporate recovery at Beever and Struthers, said: “The decision to put the business into administration obviously emanated from the extremely challenging conditions in the residential property market.

“While we sympathise entirely with those people made redundant, we’re delighted that there is a largely positive outcome which most importantly keeps the Edward Mellor brand alive and provides new jobs to a number of the ex-employees.”

Colin Mellor said: “The trading conditions we have experienced since the autumn of 2007, conditions which have not been seen in post World War Britain, meant that the company was not able to reduce it’s cost base to reflect the dramatic decline in the housing market activity levels.

“In purchasing the assets and trading name of Edward Mellor, we have a company which is equipped to deal with the current climate and provides a sound platform for the customers we have acquired through the purchase and for the staff we have been able to employ and to keep alive the strong brand reputation founded by my father over 25 years ago.”

Branches at Denton, Droylsden, Gorton, Edgeley, Hazel Grove, Levenshulme, Stalybridge, Woodley and the head office in Stockport are being retained under the new owner.

The sites at Bramhall, Cheadle, Cheadle Hulme, Hyde, Openshaw, Reddish, Romiley have closed.

Most recent accounts for Explora, for the year to June 30 2007, show the company made a £325,797 profit on turnover of  £7.2m.