Arun Estates is to close six London branches under the Douglas Allen brand name from next week, with the majority of staff to be let go.
We are told that the offices to close are situated in Ilford, Chingford, East Ham, Barkingside, Chigwell, and Wanstead.
According to sources, a number of staff members will be leaving the company, with the rest to be pushed into what the firm refers to as ‘super hubs’.
EYE has been informed that staff members were taken into a hotel in Waltham Abbey yesterday and notified about the changes at the company, with many estate agents now facing redundancy, including some people who have been working for the firm for more than 20 years.
Arun Estates, when approached for comment, initially refrained from talking about the staff redundancies in East London, but were instead keen to share the news about the new business model being adopted in the capital.
But the company has now followed up to say that the estate agency is working to relocate all affected staff into the new Hub model.
“Currently there have been no redundancies but the majority of staff will be relocated within Douglas Allen or offered opportunities within the Arun Estates network,” a spokesperson said.
Aldo Sotgiu, group managing director at Arun Estates, told EYE: “Within our Douglas Allen brand, which covers much of East London and Essex, we’ve decided specifically for the East London area to move ahead with an exciting hub model with three super hubs covering the whole of our East London region.”
Sotgiu points out that this not the first time Arun Estates has entertained a different business model. He says the firm successfully applied changes in a section of its Brighton Cubitt & West network several years ago.
He explained: “The three super hubs will continue to cover the same geographical area providing the same high level of service and commitment from three physical bases.
“What this means is that six of the existing offices now become virtual spokes feeding into the super hubs with a number of staff from the existing network being transferred to one of the three super hubs where we’re anticipating much higher levels of activity.”
Sotgiu confirmed that the three super hubs are now based in the firm’s existing offices in Woodford Green, Walthamstow and Chadwell Heath.
He continued: “This will provide a massive opportunity for growth within the hubs whilst, at the same time, providing a more efficient way of operating the business within East London where we have a high density of offices working in close proximity.
“The new hub model was a good fit for that particular part of our business and there are no plans to apply the hub model in other parts of Douglas Allen and Arun Estates’ overall business strategy remains a modern, traditional high street operation. Indeed, we have an appetite for expansion should the right strategic opportunities arise, with particular interest to add to the two recent lettings acquisitions we have made.”
This article has been updated.
Aldo Sotgiu, group managing director at Arun Estates, told EYE: “Within our Douglas Allen brand, which covers much of East London and Essex, we’ve decided specifically for the East London area to move ahead with an exciting hub model with three super hubs covering the whole of our East London region.”
Bet the staff are REALLY excited about this!!!!!
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What a kick in the nuts this is.
On one hand, letting staff go.
On the other, talking of exciting times, superhubs and expansion.
Definitely a David Brent moment.
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My sympathies lie with the staff.
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The Idler’s right – why this dreadful spin when everyone can see it for what it is – a business struggling. (no shame in that – transactions volumes are donw in 2023 and loads of estate agents will be struggling).
Why cant Mr Sotgui just front up and say ‘transactions are down, life is tough, we’re going to try a new model’
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“Super hub” being a synonym for dead in the water.
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Interesting comments so far above – as an ex-Branch Manager at Arun’s Ward and Partners Canterbury Branch and also having been Head of Training at one point, Arun is a very well run business and has consistently been highly profitable. Spicerhaart introduced the ‘hub and spoke’ model a while ago and many more companies will be doing similar, as there is no need for so many High Street offices out there, with so many people aiming to work flexibly from home, supported from a central location. I feel for the staff of course, I know many of them and I sincerely hope those who are no longer going to be employed there gain work soon. The training and development within the Group is 2nd to none so other companies out there will be taking on some brilliant estate agents – sometimes forced change gives positive-minded people the nudge they need to move on and enhance their careers. Not just a sign of the tougher market, but also a sign of the times for ‘traditional’ brands to evolve and update their model – sincere best wishes to all!
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You’re right in saying the training & development is good at Arun. The man management never was, which is why brilliant estate agents have been leaving for years & years. Witness this debacle! I’d be looking over my shoulder if I worked there…..
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In the face of difficulties all in agency are facing, it seems like a broadly sensible plan but as the comments have shown, the spiel from Sotgiu is awful.
Not sure I understand the concept of “virtual spokes” feeding into a hub. Significant cost savings can only be had by closing those branches where rent, rates and staffing provide obvious savings. Such a shame also for poor Rightmove who will no doubt quickly move to support such an agent’s obvious difficulty with challenging conditions.
But wait, hasn’t Rightmove just announced its rate rises ? Surely some mistake or are they not in touch with current conditions ? Answers on a postcard please !
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A sign of the times as some have said – Aruns not the first to react and certainly will not be the last. Those that criticised the spicerhaart initiative of hub and spoke have egg on their faces as many have tried to mirror and many more will follow suit. However I predict that lack of investment in marketing and tech will mean a significant percentage of those businesses will struggle to make it work. Too many companies still pushing a cheap fee proposition – this market will catch them all out. I also predict that many self employed people will either return to employed or leave the industry as the volumes aren’t there and the combination of low productivity and low fees mean people can’t cover their cost of living.
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Tornado – the point on self employment is you don’t need volume. There will still be circa 1M sales this year – more than enough for efficient businesses. Just got to cut the fat and self-employed / hub and spoke does that
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It is not surprising
lower revenues mean you have to cut costs to stand still or find a magic bullet?
asking staff to step up -do more-will save them from a similar fate
I’m waiting to see what is to happen at Cwd/C as that wouldn’t seem to have been the buy of the century now with senior figure heads bailing out before it gets really horrible
feel for the staff though especially the door soldiers who are the ones invariably sent over the top first
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As an ex-Branch Partner at Arun Estates, I really feel for my former colleagues and I’m not at all surprised by Aldo Sotgiu’s attempts to put a positive spin on this, rather than actually saying how sorry he feels about having to make redundancies. There are some great people working at Arun, it’s a shame that the senior management there are all too willing to lose them to competitors or into self-employment.
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Arun train up many excellent people, foolishly let them go/drive them out & then have to compete with them for years up and down the High Streets of the South East. It is an odd way of working. Rest assured though, the senior management knows best!!!
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