In languishing market, big brokerage closes its doors

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One of the largest real estate brokerages in Calgary – a city whose housing market has been hit hard by the oil slump – is closing its doors.

Royal LePage Foothills has shut down all six of its offices in the area, impacting hundreds of agents and clients, according to a report by the Calgary Sun.

Royal LePage brokerages are independently owned franchises that operate under license from Royal LePage Canada, the Sun reported. According to a statement from Royal LePage Canada’s Toronto head office, while Calgary’s languishing economy hasn’t done local brokerages any favors, this week’s closure was due largely to poor performance the Royal LePage Foothills.

“The economy may have played a role in increasing stress over the past year on Royal LePage Foothills but today’s situation is attributable to the performance of this individual business,” the statement read. “This is a case of financial challenges impacting a local brokerage firm.”

Two other Royal LePage agencies, Royal LePage Benchmark and Royal LePage Solutions, remain open. They have reached an agreement with Foothills agents to allow continued operation under the company name, the Sun reported.