Landmark White's viability in doubt after second saboteur valuation leak

Landmark White's viability in doubt after second saboteur valuation leak
Landmark White's viability in doubt after second saboteur valuation leak

Landmark White's second suspension from the valuation panels of major lenders was having "a major impact on the business and its viability", acting chief executive Tim Rabbitt told staff last week in a leaked email.

The troubled valuation firm, hit by two unauthorised valuation data leaks on the web, told staff it is considering a sale of "the whole or parts" of the business.

It acknowledged reinstatement by its major lenders was not likely "immediately." Nor any quick reinstatement onto the ASX.

It added that having used up a significant portion of its cash reserve during its first suspension period in January, the current second suspension which began in early June was having "a major impact on the business and its viability."

The initial breach cost up to $7 million.

"Without an immediate reinstatement from our clients, the business is likely to be in trouble in the very near term," Mr Rabbitt said in the email seen and quoted by the Australian Financial Review Weekend issue.

"The company is still working on reinstatement, but the directors (as is their responsibility to do now) have to consider alternative options for the business including the potential sale of the whole or parts of the business."

Landmark White has been unable to convince its lenders, which include three of the country's largest banks (with the exception of Westpac) to turn work back on in the wake of a second theft of information.

The saboteur posted a range of documents posted to file-sharing site SCRIBD.

LMW warned lenders that the cutting off lines of work posed a threat to the viability of the valuation industry as a whole which earned a rebuke from its own industry body.

Landmark White chairman Keith Perrett on Friday said he was proud of his staff for the commitment they had shown the company in the wake of the second information theft.

"Our management team is working closely with staff to ensure they are informed and supported as we work through the challenges the business currently faces," he said.

"We're communicating with our employees on the state of the business every day, and will not apologise for being open and transparent about the incident and impact on our business."

"LMW has been a successful business for almost 40 years, one that employs more than 450 people across Australia including in regional and remote areas," he said.

It maintained the latest data breach did not constitute a notifiable breach under law as only limited private information was contained in the documents posted onto document sharing site SCRIBD.

Earlier this month Landmark White had previously disclosed CBA and ANZ were among a "small number of clients" who had dropped LMW from their valuation panels.

 

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Landmark White Cyber Security

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