Real estate franchise Go Gecko appoints voluntary administrators as Queensland property market suffers

Queensland property franchise Go Gecko has been placed into voluntary administration, with chief executive Geoff Doyle reportedly being replaced by Noel Scully.

A spokesman for administrators Vincents Chartered Accountants has confirmed the company is now in voluntary administration, although the appointment relates only to company owned stores – the franchisees are unaffected.

Scully was contacted this morning by SmartCompany, but no reply was available prior to publication.

While no official reason for the collapse has been provided, it is believed the downturn in the Queensland property market is responsible. Scully has told the Courier-Mail that difficult business conditions led to the decision, also confirming that two company-owned locations may close.

He also said there were a number of reasons behind Doyle leaving his position.

Over 40 franchisees were informed of this at a meeting on Tuesday, where they were apparently also informed that Scully would be replacing Doyle.

However, one franchise contacted by SmartCompany this morning was not aware that an administrator had been appointed.

The spokesman for Vincents has said a review of the business will now be underway.

Go Gecko, which was founded five years ago, has over 50 locations. It has attempted to stand out from other property managers by capping its agent commission fees.

However, the property market in Queensland, particularly in the south-east, has suffered some of the weakest conditions in recent history. A lack of finance, a downturn in the construction industry and the damage caused by this year’s natural disasters have only exacerbated long-term issues.

Prices have continued to fall, especially on the Gold Coast and south-east Brisbane, where supply continues to exceed demand. Ratings agency Fitch has said many of country’s mortgage delinquencies can be located in Queensland.