Towergate Financial today revealed mortgage brokerage John Charcol went into administration before it acquired the company.
Towergate CEO Ian Darby says John Charcol went into administration last night but did not disclose the amount paid for the company.
On a conference call this afternoon, Darby,who previously spent more than 15 years at John Charcol after joining the brokerage in 1984, also revealed the opportunity to buy John Charcol first arose eight days ago.
Darby said John Charcol's staff, assets, brand, customers and services were acquired by Towergate overnight.
Under the terms of the deal, all John Charcol staff and directors will be making the move to Towergate Financial.
Over the last two years, John Charcol has restructured its business in response to various financial problems.
In January 2008, it put itself up for sale for £50m but no buyers were forthcoming. Its directors were forced to pump in a total of £3.7m in funding in 2008 and, in May that year, it cut 69 of its 276 staff and closed its offices in Manchester, Birmingham and Guildford.
On Friday, John Charcol was revealed to have set up a new company called John Charcol 2010, which was registered on the Companies House website this month.
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