Activist investor tells Purplebricks chairman to resign

An activist investor who has built up a stake in Purplebricks has called on the company’s chairman to resign after a massive fall in its share price.

Adam Smith has taken a 4% stake in the online estate agent, based in Solihull, which has seen its shares plunge 80% since listing in 2015 after enduring a series of profit warnings.

A letter to chairman Paul Pindar on behalf of Smith’s investment vehicle Lecram Holdings said “urgent action is now essential” to restore the credibility of the company with investors.

Shareholders with a stake of at least 5% can request the board convene an extraordinary general meeting to discuss urgent matters.

The letter, seen by The Times, urges Pindar to step down in favour of a “replacement with necessary experience and skills to address urgently the company’s continuing cash burn and operating performance within the residential estate agency sector”.