Market claims NJ broker, Foxtons
By Matt Carter, Wednesday, September 26, 2007.Bookmarking Sites
Foxtons -- the London-based discount real estate brokerage that in a little more than seven years grew to 500 employees serving New Jersey, New York and Connecticut -- issued a press release late Wednesday saying it was laying off 350 of its 380 remaining employees and may file for bankruptcy protection.
A finalist for the 2007 Inman News Innovator Award, Foxtons blamed the decision on a "sharp decline" in the real estate market.
"Foxtons is well run, very efficient, has a great team and has pioneered a new model in the real estate business – a model which has proven itself and, we believe, will have lasting influence on our sector," John D. Blomquist, Foxtons’ senior vice president and general counsel, said in a statement.
Blomquist said Foxtons has "been battling against a real estate market that recently has turned into a sharp decline, and the company no longer has the liquidity to operate as a going concern.”
Foxtons said intends to "preserve the value" of its 4,400 current listings, while minimizing customer disruption and dedicating anticipated revenues to pay creditors.
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Submitted by Larry Hotz on November 30, 2008 - 7:38am.
The discount brokerage model has always worked well in a "good market". But, when sales decline, so does the model. We saw saw the same thing happen in Denver in the 1980'2. Two major discount brokers closed up shop when sales declined due to the energy bust then.
Expect more closing of those brokers.
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