Home of Choice has gone into administration after acquisition talks failed at the last minute.
The board has filed a notice with the High Court of its intention to appoint administrators.
It said it had been working towards selling the company for some months, which it believed would bring a fresh injection of capital into the business, allowing it to grow the company and enhance broker services.
Several bids were made for the company and a preferred bidder was identified. Home of Choice claimed it had had assurance from an investor and its bank that broker and staff payments, while delayed, would be made on Monday 26 April.
The FSA granted a change of control to the investor on Thursday 22 April, and talks collapsed at the last moment. Talks have continued with other investors this week to secure a sale of the company.
However, Home of Choice was unable to secure an extension of its overdraft facility to cover the payments due to brokers and staff.
The statement says: "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."
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards