If true, this would be the third of the bigger companies to experience difficulties. Interealty went tits up last year and Viva's recent dramatic policy shift was, presumably, brought about by a lack of coins in the piggy bank.
The market in Southern Spain has undoubtedly slowed significantly, and large companies have large overheads, so its not surprising if we see a degree of "rationalization". In my opinion ( for what its worth), companies that have done OK during this downturn, appear to belong to one or more of three types:
- those that have stayed focused on their core market, refused the temptation to expand and kept overheads low.
- those that have, conversely, embraced emerging markets (although watch out for a glut of resales in the near future).
- those that have understood and exploited new media, ie the internet, where the cost per lead can still be incredibly low compared to traditional media, exhibitions and the like.