Sam Mitchell has been booted out as Chief Executive of Purplebricks after just 18 months in the role.
The shock announcement was made to staff last week.
Mitchell, a former Foxtons executive, had been a key figure in the Purplebricks takeover after leading online agency Strike since 2018.
Mitchell also headed up UK Sotheby’s International Realty before going on to work for Rightmove in 2015.
SEVEN YEARS
Mitchell (main picture) told Property Soup: I’m not sure any other online agent CEOs made it to seven years so that maybe a record so I am definitely looking forward to a break!”
NEXT STAGE
A Purplebricks’ spokesperson says: “Purplebricks has reorganised for the next stage of its journey.
“The group will now operate with distinct businesses in Sales, Mortgages and Lettings, with a fourth division to be announced in the coming months.
“These businesses will continue to be run by their respective managing directors.”
“These businesses will continue to be run by their respective managing directors, who will report into Andrew Harrison as Executive Chairman.
“As part of this reorganisation Sam Mitchell, CEO, will leave the business after a transition period.”
CARPHONE WAREHOUSE
They added: “Andrew, the former CEO of Carphone Warehouse, and Sam have worked together to disrupt the estate agency industry since 2017, first at Strike and then at Purplebricks following the merger of the two brands in 2023.
“Sam will continue to work closely with Andrew over the coming months as Purplebricks’ new structure takes shape.”
CHEQUERED
Michael Day, Managing Director at industry advisers Integra Property Services, says: “An interesting development in the chequered recent history of Strike and now Purplebricks.
“Both operate and have operated a business model that many in the industry see as doomed to fail yet a brand that is still highly recognised by consumers.”
And he adds: “In an environment facing rising costs and greater regulation, the low or zero cost model looks doomed to fail and this may herald another rethink in how the business moves forward.”
REAL SHAME
Peter Brodnicki, Chief Executive of Mortgage Advice Bureau – the authorised representative for all of Purplebricks mortgage business, says: “It’s a real shame. Sam and I would have liked to see him achieve his vision for the business.”
“I wish him every success for the future and in the meantime I look forward to continuing to build our mortgage partnership with Purplebricks.”
DECKCHAIRS ON THE TITANIC
But one high placed industry source adds: “How many deckchairs can you arrange on the Titanic?
“It’s unfathomable the amount of money this brand has splashed on recognition. What PB has failed to do is build on the success that Kenny (Ken Bruce) and Michael (Michale Bruce) actually did.”
AWARD WINNING
A Purplebricks spokesperson adds: “Trading remains in line with our expectations.
“We recently were awarded Best Online Estate Agency at the ESTAS Customer Service Awards 2024 and are the largest UK estate agency in terms of number of listings.”
