Tesco and Spicerhaart are locked in a legal battle over the sale of the supermarket giant’s property business.
Tesco is suing Spicerhaart, claiming that the agency chain, which bought Tesco Property Market and rebranded it as iSold, owes it £3.37m.
Spicerhaart is counter-suing Tesco, claiming that the supermarket reneged on its promise to provide marketing and distribution for the property site after the sale.
The sale went through after the Office of Fair Trading told Tesco in 2008 that its property business was in fact an estate agent.
Tesco had launched it in 2007 to huge controversy, taking estate agents’ listings via a deal with Fish4Homes. But agents, unhappy that Tesco’s real aim was to use agents’ properties to build critical mass as it established a private online sales operation, demanded their properties be pulled.
Tesco offered its customers the opportunity to market their home for a flat fee of £199. The cost included a Tesco For Sale sign, plus listing on the Tesco Property Market website.
It is understood that following the OFT ruling, Tesco had approached Spicerhaart in a bid to try and recoup their investment.
The deal was that Spicerhaart would pay this sum not immediately but in three years. The £3.7m repayment was due earlier this year.
In return for Spicerhaart’s ‘rescue’, Tesco agreed to continue offering marketing and distribution, including via its website and Clubcard scheme. Spicerhaart had expected thousands of visitors to Indigo from this deal, but alleges that they did not materialise.
The latest accounts for iSold – as Spicerhaart rebranded Tesco Property Market – refer to the £3.37m loan from Tesco, and state: “Legal action is being taken to challenge this liability, which is also the subject of a guarantee from Spicerhaart Group.”
Tesco has filed a claim in the High Court for repayment, whilst Spicerhaart has lodged a counter claim for a larger sum.
Spicerhaart declined to comment and said that iSold is still trading.
Tesco this summer launched into the residential mortgage market.
.png)
%20(002).png)
.png)
Comments
@nice stuff absolutely hilarious but a fantastic point
Tesco also has a Fine range, perhaps F&C can sue them too?
Can't see them on the allagents awards list for winners of the best BOGOF offers?
Couldn't be happening to a nicer bunch of people...fight on!
the article says
"The sale went through after the Office of Fair Trading told Tesco in 2008 that its property business was in fact an estate agent"
The fact they have been deemed to be an Estate Agent in the past surely gives any plans they to become a Passive intermediary a bit of a fisting.
Thats given me a chuckle anyway.