Boomin is Bust - liquidators called in...

Boomin, the online property portal founded by the former boss of Purplebricks, has called in liquidators according to a Sky News report.

Sky says the service - which currently lists hundreds of lettings as well as sales, plus a string of property-related features - has reportedly called in BK Plus, an accountancy firm, to handle its insolvency.

The 65 employees were reportedly told the news this afternoon.

Boomin was set up by Purplebricks founder Michael Bruce amidst a blaze of publicity and sharp criticism of existing portals Rightmove, Zoopla and OnTheMarket. Accompanying its launch was a labyrinthine structure of agent representatives, senior management and others, including an advisory board.

Around a fortnight after its launch Bruce was promoted from the role of executive chairman to group chief executive officer. Then within a few weeks the PR drive for Boomin shifted emphasis, claiming it was not exactly a portal but more a lifelong property friend of agents, landlords, buyers and sellers.

It diversified into increasingly unusual activities - in June this year, for example, it acquired interior design platform My Bespoke Room, a move Bruce described at the time as being part of a strategy to make Boomin a go-to platform for all things property.

Boomin has been advertising on some TV channels up to and including last week, suggesting the move to call in liquidators may have been a sudden decision.

This afternoon Michael Bruce told Sky: "Our move to a fee-paying, revenue-generating model from April 2022 coincided with the start of the economic slowdown and the drying up of funding.

"In line with most tech company scale-ups we overhauled our business model to reflect the new market conditions, sharpening our focus on our key differentiated products and improving efficiencies to bring forward the point where we reach breakeven and generate positive cashflow."

He claimed to have spent significant sums of his own money into Boomin to keep it operating and had also achieved "a successful partial raise in the spring".

"While we had a plan, support from a number of existing shareholders and a solution with a new investor, the progressively worsening economic situation, combined with increasing uncertainty in the housing market, has resulted in us being unable to get the necessary funding round over the line in time to enable us to continue,"

You can see the original Sky News story here.