Industry figures have questioned the likelihood of any realistic offer being made for Network Data, after the firm announced it was looking to sell the business.
The network has been dogged by controversy in recent months, with a series of the network's appointed representatives (ARs) claiming that they had not been paid owed commissions for a number of months.
Network Data continually denied it had a funding problem, blaming the delays in payments on technical issues and human error, and claiming all issues would be resolved once the sale of its Botley Mansion headquarters went through.
However, in a statement to the London Stock Exchange, Network Data confirmed the proposed sale had fallen through, and stated its plan to sell the network proposition.
It said: "The board has concluded that in light of the financial position of the company and the current difficult trading conditions in the mortgage broking market, it is in the best interests of the company to pursue approaches for the mortgage broking business."
Simon Rourke, managing director of YouTogether and a former AR of the network, says those intermediaries awaiting payment were now left in limbo.
He says: "The bottom line is that Network Data needs to admit to its ARs that it does not have the money to pay them. It has given us, and many other ARs that have pursued them legally for the fees, the runaround. If it had been upfront with us about the situation, we could have worked with them."
IFAonline's sister publicayiom, Mortgage Solutions, last month exclusively revealed a major lender had served notice on Network Data, withdrawing the availability of its products to the network due to concerns about the commission payment issues.
A number of networks refused to comment officially on whether they would be interested in making an offer for the troubled firm, though one questioned where the value in any deal would be.
A source says: "If someone acquired Network Data, the potential pipeline they would take on would likely be significant. It is more likely that they would wait until the firm goes into administration, and then snap up the ARs, though in all probability, they will have left for other networks."IFAonline
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