in a surprising reversal for the Quebec financial services firm, which had bought the business in the first year of the pandemic when the country’s real estate market was booming.
“The decision to cease the operations of FairSquare was not an easy one,” Desjardins spokesperson Chantal Corbeil said in an e-mail. “We have [made] efforts to promote FairSquare activities, but the rapid deterioration of the housing market and its business model do not allow us to continue operations,” she said.
FairSquare’s demise is reminiscent of what happened to Purplebricks and its British-based owner. Purplebricks exited Canada after it failed to gain traction with its ambitious international expansion plan. The online brokerage competes with traditional brokerages on price by offering a flat-fee as opposed to commissions typically paid to real estate agents.
When Desjardins bought Purplebricks, it was supposed to provide the financial services firm with another avenue to sell products and acquire new clients.