House Slump Shutting Down Real Estate Businesses
We were all hoping that the housing slump would get better with time. Unfortunately it only seems to be getting worse. People are finding it hard to bring in business and some are having to shut down. Foxtons is one such place that is closing because of the slumping housing market.
The West Long Branch-based real estate company says it’s contemplating bankruptcy protection for an orderly shutdown. It will lay off 350 of its 380 workers and intends to keep 4,400 listings on the market. Senior vice president John Blomquist tells The Asbury Park Press the company no longer has the liquidity to operate as a going concern.
Foxtons was founded in 1999 on the principle that consumers shouldn’t pay a 6 percent commission. Agents were paid salaries and customers were charged 2 percent. The company was sold in 2004 and eventually commissions were raised to motivate agents to show Foxtons’ homes. A private-equity firm bought it in May.