Foxtons
| Type | Private |
|---|---|
| Industry | Estate agent, Real Estate |
| Founded | 1981 |
| Headquarters | London, United Kingdom |
| Website | www.foxtons.co.uk |
Foxtons is a London and Surrey estate agent with 32 offices, dealing with both lettings and sales. It was founded by Jon Hunt in 1981 and was acquired by private equity firm BC Partners in 2007 for £390m. [1] [2] In May 2008 the Camden office was opened becoming the largest estate agent office in Europe.[citation needed]
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[edit] History
Foxtons was founded in 1981 in Notting Hill Gate, London, as a two-person estate agency.[3] In 1982, Foxtons opened a second office in Fulham Broadway, using a "0% commission" offer.
2001 saw the launch of promotionally branded Minis, bearing the Foxtons logo.[4]
In early 2010 Foxtons launched its new 'X-ray Mini' which was created in collaboration with contemporary artist Nick Veasey. Two new offices were also opened - North Finchley and Temple Fortune. In 2011, Foxtons launched its 30th office in Blackheath, with the latest office due to open in Marylebone in April 2011, taking the total number of Offices to 31.[5]
[edit] Trade bodies
Foxtons is a member of The Property Ombudsman, The Association of Residential Letting Agents,[6] [7] [8] [9] and the The National Approved Letting Scheme [10] [11] as well as Tenancy Deposit Protection Scheme [12]
Foxtons is known for its high fees for rentals[13] and have been the subject of an injunction from the Office of Fair Trading due to the alleged use of unfair terms in their letting contracts, although their terms and conditions are now approved by the OFT.[14][15]
In March 2006 the BBC launched an investigation called "Whistleblower" accusing estate agents including Foxtons of "lying to customers, faked signatures, false passports and dodgy deals with developers".[16]
In January 2008 they were criticised for their staff launching "a barrage of vicious and personal attacks" against residents of Balham via the website of a local newspaper.[17]
[edit] Foxtons USA
Foxtons North America, was a subsidiary of Foxtons in New York and has now filed for Chapter 11 bankruptcy.[18] According to Foxton's own website, it is no longer engaged in the listing of homes in the United States.
On October 17, 2008 a class action lawsuit was filed by attorney David A. Krenkel, Ocean Twp., New Jersey on behalf of the Foxtons' employees.[citation needed] The lawsuit is seeking class action status against the discount real estate brokerage for allegedly firing employees without sufficient warning. The lawsuit was filed in Federal Court in Trenton, NJ and claims Foxtons laid off 350 of its 380 workers in late September without 60 days notice as required by the Federal WARN Act.
In 2009, David Krenkel, a New Jersey employment lawyer, and Lisa Krenkel from the law firm of Krenkel & Krenkel, LLC, along with co-counsel, The Gardner Law Firm, Lankenau & Miller, LLP and Margolis Edelstein, settled a class action lawsuit for $475,000.00 against Foxtons, Inc., a discount real estate brokerage firm located in West Long Branch, New Jersey. The complaint was filed in the United States Bankruptcy Court and alleged that Foxtons terminated 350 employees without sufficient warning. The lawsuit alleged that Foxtons violated the Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101, et seq.
[edit] In the media
In September 2010, Foxtons opened their 27th branch in Streatham, South London.[19] To celebrate the opening they announced a 0% commission deal for new vendors. This 0% deal is now standard for evey new office that Foxtons opens.[20]
Private equity firm BC Partners loses control of London estate agent, less than three years after buying it for £390m. BC Partners, which oversees a €5.8bn (£5.2bn) fund, lost control of Foxtons after creditors reorganized the real estate broker’s debt in December 2009.[21]
[edit] Accusations of unethical practices
In 2003, Foxtons admitted to paying contractors to systematically remove "For Sale" signs from properties being advertised by competitors.[22]
In 2006, an investigation by the BBC accused the organisation of various unethical practices, including illegal collusion with sister company Alexander Hall over prospective buyer's finances, falsification of client's signatures, lying about fake offers, and deliberate undervaluing of properties.[23] Complaints from Foxtons about a BBC documentary on the matter were rejected by Ofcom. [24]
In 2009, the company was taken to court by the Office of Fair Trading over "one-sided" contracts with landlords.[25]
[edit] References
- ^ Foxtons puts up ‘Sold’ sign as BC Partners steps in for £390m
- ^ "BC Partners buys Foxtons in 390 mln stg deal". Forbes.com. 2007-05-21. http://www.forbes.com/business/feeds/afx/2007/05/21/afx3741719.html. Retrieved 2009-07-06.[dead link]
- ^ "Full Foxtons history". Foxtons.co.uk. http://www.foxtons.co.uk/foxtons/about/foxtons.html. Retrieved 2009-07-06.
- ^ "Foxtons Minis". Foxtons.co.uk. http://www.foxtons.co.uk/foxtons/foxtons_mini_cooper.html. Retrieved 2009-07-06.
- ^ "The history of Foxtons Estate Agents". Foxtons.co.uk. http://www.foxtons.co.uk/foxtons/about/foxtons.html. Retrieved 2010-08-17.
- ^ "OEA Press release". Oea.co.uk. Archived from the original on May 8, 2008. http://web.archive.org/web/20080508222031/http%3A//www.oea.co.uk/press_releases_07.htm#one. Retrieved 2009-07-06.
- ^ Daniel Francis - http://www.landlordexpert.co.uk/+(2007-03-06). "Delight as Foxton's joins ombudsman scheme". Landlordexpert.co.uk. http://www.landlordexpert.co.uk/index.php?news=440. Retrieved 2009-07-06.
- ^ "Estate agent ombudsman enlists Foxtons". Propertyweek.com. http://www.propertyweek.com/story.asp?storyCode=3081424. Retrieved 2009-07-06.
- ^ Hamer’s delight at major coup as Foxtons join Ombudsman Scheme[dead link]
- ^ "Foxtons signs up to the national approved letting scheme". Nalscheme.co.uk. http://www.nalscheme.co.uk/june_2007.htm. Retrieved 2009-07-06.
- ^ Foxtons Business Development News
- ^ "New deposit scheme a positive step for UK lettings market". Foxtons.co.uk. http://www.foxtons.co.uk/news/2007/04/new-deposit-scheme-a-postive-step-for-uk-lettings-market.html. Retrieved 2009-07-06.
- ^ Rental wrongs - BBC Watchdog, 9 January 2008
- ^ OFT acts against 'unfair' Foxtons, BBC Website, 26 Feb 2008
- ^ High Court rules against Foxtons, BBC News, 10 July 2009
- ^ The secret agent, by Anna Adams, BBC, 21 March 2006
- ^ Estate agents posed online to insult residents, by Andrew Alderson, Daily Telegraph, 19/01/2008
- ^ US Foxtons files for bankruptcy, Ben Bland, Daily Telegraph, 08/10/2007
- ^ http://www.balhampeople.co.uk/property/Foxtons-offering-0-commission/story-6979743-detail/story.html
- ^ http://www.negotiator-magazine.co.uk/article/foxtons-axes-commission-1437
- ^ "Foxtons taken over by banks". The Daily Telegraph (London). 2010-01-08. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/6950363/Foxtons-taken-over-by-banks.html.
- ^ http://www.thisislondon.co.uk/news/article-5324333-foxtons-for-sale-boards-scandal.do
- ^ http://news.bbc.co.uk/1/hi/magazine/4826444.stm
- ^ http://www.guardian.co.uk/media/2007/jul/16/ofcom.bbc
- ^ http://www.independent.co.uk/news/uk/home-news/foxtons-in-court-fight-over-unfair-contracts-1676412.html
