CareerBuilder + Monster Files for Bankruptcy
CareerBuilder + Monster, once a powerhouse in the online job recruitment scene, filed for Chapter 11 bankruptcy protection on Tuesday. The company, based in Chicago and formed from the merger of CareerBuilder and Monster last September, stated its intention to sell off its business.
The most notable aspect of this sale is the Business Board Operations, which is being sold to JobGet. That’s an app geared toward gig workers, which—I think—reflects a shift in how job searching is approached nowadays.
In addition to that, CareerBuilder + Monster has also struck a deal to sell its software services related to federal and provincial governments to Valsoft, a Canadian software company. They are also selling the Military.com and FastWeb.com websites to Valnet, another Canadian entity.
They’ll be going through a “stalking horse” bidding process, which basically means someone’s already agreed to make a bid. But, to be fair, they can still hope for other offers that might come in. The specifics of the deal aren’t public yet, which is a bit opaque, really.
A recent court filing in Delaware revealed that the company has assets valued between $50 million to $100 million, yet it’s weighed down by debts ranging from $100 million to $500 million. That’s quite a range, and I can only imagine what that must look like from a financial health perspective.
They’ve secured about $20 million in funding to help them through the bankruptcy process, which seems like a lifeline at this point.
Jeff Furman, the CEO, mentioned that the company is facing a “challenging and uncertain macroeconomic environment.” Interestingly, he noted that the court’s method of selling could actually lead to better value while also trying to maintain jobs.
It’s been reported that CareerBuilder + Monster is struggling to keep pace with other job platforms, including aggregators and social media sites like LinkedIn. That’s a tough market out there—definitely not an easy spot to be in.
Lastly, it’s worth noting that CareerBuilder + Monster is currently owned by private equity firm Apollo Global Management and Dutch staffing company Randstad. They’ve brought in AlixPartners and the law firm Latham & Watkins to help them navigate what’s become a tumultuous period.
