Lecram Holdings Limited, beneficial owner of a 5.16%% stake in Purplebricks, has renewed its call for the firm’s chairman, Paul Pindar, to resign from his role.
Activist investor Adam Smith of Lecram Holdings Limited has long called for Pindar to go and replace him with industry veteran Harry Hill.
Pindar received the backing of 71% of shareholders at a general meeting in December 2022 to keep him in place, but a significant 29% of investors voted for his removal after Smith’s Lecram Holdings called a General Meeting to vote on the boardroom shake-up.
Lecram proposed the removal of Pindar as chairman and the appointment of Harry Hill, formerly of Countrywide and Rightmove, to the board of directors. But this was rejected by the company’s shareholders, although there was a significant split in the votes.
But after reviewing the statement issued by the company on Friday, which includes plans to potentially put Purplebricks up for sale, a spokesperson for Lecram Holdings Limited said: “It is regrettable that the lack of relevant experience at helm of Purplebricks, which we highlighted last June, has led the Company to arrive at this unfortunate juncture.
“We are calling for a swift conclusion of the strategic review and, should it not lead to an acceptable offer for the company, that the chairman immediately stands down and the board, in consultation with us and other shareholders, brings in someone with the knowledge and capability to guide Purplebricks back to profitability.”
Martin McKenzie of allAgents has also called for Pinder to step down in order to steer the company in a new direction.
Following Purplebricks’ recent announcement that it was putting itself up for sale and warning of serious issues facing its future, allAgents suggests that the company requires fresh leadership.
McKenzie said: “Purplebricks doesn’t need to be sold, all that is required is a new chairman and a fresh direction. Even Nicola Sturgeon knows when it’s time to go!”
McKenzie went on to criticise Purplebricks for failing to improve its customer experience, stating that “based on the industry’s very own review platform, Purplebricks is the worst rated agent in the UK for customer experience, yet on Trustpilot and Feefo, they are 4 and 5 star rated. How is this possible?”
This is not the first time allAgents has taken issue with Purplebricks. In 2017, the online review site accused the company of corporate bullying after it threatened legal action over the publication of negative reviews. allAgents challenged the validity of Purplebricks’ Trustpilot reviews and called for an independent audit, which Trustpilot declined. Purplebricks’ early investor, Pinder, became the company’s Chairman in 2015 and is the last of the original leaders to remain.
McKenzie continued: “Both consumers and investors are no longer being fooled and that a change in leadership is necessary for the company’s future success.”
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