Administrators appointed at The Agency Group over outstanding debt

In a statement, investment group Magnolia said it appointed voluntary administrators BDO to pursue the real estate firm for its outstanding secured debt, after a security agreement was entered into almost a year ago.

The debt is understood to be just $379,000.

The investment group said it had lost confidence in The Agency’s board and its unknown financial position.

Magnolia said despite raising additional finance and offloading assets, the debt remains outstanding after repeated demands for payment.

The investment group appointed the voluntary administrators to top-level The Agency Group only, which has no operations in itself.

The Agency has multiple subsidiaries that hold key operational licences, employment contracts and trust accounts, but the administrator is not appointed over any subsidiaries.

The real estate agency will continue to trade during this period with agents, sellers, buyers and tenants unaffected, Domain understands.

Comment was sought from The Agency’s chief executive Matt Lahood.

Shares in The Agency were suspended from trade on Tuesday.