Merchant House Financial Services – an IFA subsidiary of the Merchant House Group – has entered administration with Leonard Curtis appointed to handle the case.
Alex Cadwallader, Michael Healy and Andrew Duncan were appointed joint administrators to the financial advisory division on 21 March 2013.
The administrators have since coordinated the sale of the intermediary to Aspire Financial Management Limited, a subsidiary of the Tenet Group. Thirteen jobs were transferred in the process as well as continuity for some 70 IFAs.
Andrew Duncan says: “Merchant House Financial Services has been sold as a going concern and that jobs have been preserved. All employees will be transferred to the purchaser and there will be continuity for the IFAs.
“We are now working closely with the directors of Merchant House and Tenet to ensure a smooth transition of the business.”
Northampton-based Merchant House Financial Services offered corporate and private clients professional advice on a range of financial products and services, including investments and portfolio planning, pensions, corporate financial planning, mortgages and general insurance. The company operated a network of 15 offices around the UK, the majority of which were located in the South West.
The administration of Merchant House Financial Services comes hard on the heels of Merchant Capital, the structured products arm of Merchant House Group, which was forced into liquidation last month.
In November, the embattled Group was unable to raise sufficient funding to restore trading on the Alternative Investment Market (AIM) and its admission to the junior market was cancelled.
Merchant House Financial Services has struggled financially since the acquisition of the business of Wisbech-based competitor Clarkson Hill Group in 2010.