Property firm collapsed owing creditors £328k

NORTH East property company Jan Forster Estates collapsed owing creditors more than £328,000 new documents show.

- COREENA FORD

Last month we reported how administrators were called in at Gosforth-based Jan Forster Estates Ltd as it battled a number of financial challenges. A pre-pack deal saw administrators sell the business to founder Jan Forster's daughter Angela Dennison, who had been managing director at the failed firm.

The deal, carried out by Andrew Little and Gillian Sayburn from Begbies Traynor, saw Dennison Property Services - incorporated by Angela Dennison last October - take over the firm, which had operated across four branches in Gosforth, High Heaton and Tynemouth. It now operates from a single office based in Gosforth.

The firm had 18 employees, 11 fewer than recorded in its last accounts, and administrators said the majority transferred to the new firm.

Now documents have been filed by the administrators which lay out the chain of events which led to the estate agency's collapse, showing new owner Ms Dennison acquired the property business for £55,000, to be paid in 10 monthly instalments.