Equistone, a fund managing group have invested in Firstport after their previous investors pulled the plug.
Thus far, the terms and the amount of the investment, remains undiscloded.
The FCA have to approve the deal.
Assuming the take-over is completed it is expected that the current management will stay in place for the short term at least.
Great store is put by the use of technology to reduce costs and thereby increase profits.
That transalates to redundancies in the future.
Yes, there is the corperate speak about "Customer Service" but leaseholders are not the customers.
The true customers are those that invest in Equistone. They have a duty to maximise income potential.
Equistone have recognised that Firstport by dint of their size and abusive and onerous appointments have a captive customer base that is ripe to be exploited.
They are also doubtless aware of forthcoming changes to legislation that will severely impact the future of Firstport.
So, given that the new investor has first ranking security over all assets, they are in a perfect position to make a short term killing.
Whilst Nigel Howell will no doubt express his pleasure at this move and play the "Confidence in our future" card, the reality is that this really is the last throw of the dice. It is a deal agreed by Firstport from a very weak position.
Either do the deal or go into administration?
