Colliers International, the property agency founded by Sir John Ritblat, has been sold in a pre pack administration deal to its major shareholder the Canadian Firm FirstService. Colliers joins the list of humbled property consultancies such as DTZ that have seen their share prices plunge and eventually be sold in pre pack administrations.
The credit crunch hit the commercial property industry particularly hard when deal volumes collapsed. Volumes have since recovered but as many firms grew rapidly on debt backed deals when the commercial sector was riding high they have been left with large debt overhangs.
So who loses out?
Many of the shareholders will be left with nothing and it is understood that Barclays have lost £18m. The employees who had share schemes may also be hit although it very much depends on how they were structured.