Smith and Ken known as S&K Estate Agents, which is headquartered in Dubai, filed for bankruptcy and closed its doors as a result of the collapse of real estate prices, which led to a decline in the company’s revenue that it couldn’t cover the operating costs anymore.
Bloomberg reported that the recruitment attempts by the company failed resulting in the loss of nearly 80 employees. Also, the low number of real estate transactions done by the company and the ferocity of competition from small businesses that have reduced the commission which is paid in exchange for each transaction to 1%, all this has led to a significant decline in the company’s revenues.
And the company has handed over itself on July 21 to the Liquidation Authority after the announcement of bankruptcy in the lights of the low real estate prices witnessed in the emirate for the first time since 2013, where real estate prices have fallen by 20%.
Sources: Different sources