Foxtons, a London estate agent owned by global private equity firm BC Partners, has breached its banking covenants.
Andrew Newington, a partner at BC Partners, told a press briefing that Foxtons breached performance terms set by lenders in BC Partners’ reportedly £400m buyout of the upmarket London estate agency in May 2007, Bank of America and Japan’s Mizuho.
“As housing markets fall, so do estate agents, so we got that wrong. In hindsight, we made the wrong assessment of the market.”
The fate of the business is now believed to be in the hands of the banks, with BC Partners reportedly refusing to inject further cash until some