Shareholders in Countrywide, the UK's largest estate agency owner, have approved a £140m rescue package.

Countrywide owns 50 brands, including Taylors and RA Bennett in Gloucestershire, and employs 8,000 people nationally. The company has already issued two profit warnings this year.

Debts of £200m and difficult trading conditions have forced Countrywide to raise funds to stay afloat, as reported by the BBC

The plan, backed by 98 per cent of shareholders, raises funds at a significantly lower share price. Before the fundraising was announced, shares were trading at 50p. The plan agreed yesterday will issue 1 billion shares at just 10p each.

Existing shareholder, Oaktree Capital, will buy shares worth £24m, although its stake in the company will fall to 19 per cent from 30 per cent.

Last week, Countrywide cancelled plans for a new bonus package for its top bosses following an outcry from investors. The package could have paid out a total of £20m to three executives.

High street estate agents are facing increasing competition from online estate agencies, like Purple Bricks.