Toronto real estate brokerage The Red Pin has gone into receivership reportedly owing more than $6 million.
The firm, which describes itself on its website as a software company, was founded in 2011 with a focus on its online presence and virtual office tools for its real estate agents.
Last week though court papers were filed by receivers MNP citing “significant decline in sales” for the insolvency with funds due to run out next month.
The Toronto Star reports that creditors include Firepower Asset Management and Trilogy Growth Fund; owed a combined $6.4 million. The report says that the firm has 40 agents.
In a subsequent interview with The Star, The Red Pin’s founder Keith McSpurren said that he still believes that the real estate industry is ripe for disruption, but his model of moving from traditional listings to a more predictive technology didn’t pay off.
“It was a high-risk, high-reward situation,” he told The Star. “If I figured it out there would have been great rewards.”
The Real Estate Council of Ontario has issued the following statement:
“The Real Estate Council of Ontario (RECO) has been advised that the following brokerage went into receivership on June 14, 2018:
TheRedPin.com Realty Inc., of 5 Church Street, Toronto, ON M5E 1M2
RECO is monitoring the situation and taking all necessary steps under the Real Estate and Business Brokers Act 2002 (REBBA). Buyers and sellers who may be concerned about whether a transaction will be completed on time should speak to their real estate representative and perhaps seek advice from their own lawyers.”
What should buyers, sellers, employees do?
Anyone who has been dealing with The Red Pin including employees can contact the receiver for more information:
Jessie Hue, MNP Ltd. on 416-515-5006 or at email@example.com