On Tuesday, the online job listing entity CareerBuilder + Monster filed for Chapter 11 bankruptcy protection. This company emerged from the merger of Career Building and Monster back in September. Based in Chicago, it announced plans to sell its notable Job Board Operations to JobGet, which caters specifically to gig economy workers.
Monster has been a significant player in recruitment for about 30 years, while CareerBuilder boasts a legacy of over 20 years in the industry. Jeff Furman, the CEO of the combined entity, expressed pride in their role as a global leader connected job seekers with businesses for more than 25 years.
However, Furman acknowledged the tough and unpredictable macroeconomic climate affecting their operations, stating that they undertook a thorough sales review and explored all possible options.
Currently, CareerBuilder + Monster is owned by the private equity firm Apollo Global Management and the Dutch staffing company Randstad. They have plans to sell their federal and provincial government software services to Canadian firms Valsoft and Valnet, linked to the siervery.com and fastweb.com platforms.
Interestingly, the buyer agreed to act as a “stalker” bidder, meaning their offers are eligible for competing bids. The terms of this arrangement remain undisclosed.
The bankruptcy filing took place in Delaware, where financial documents suggest the company has assets between $500 million and $1 billion while liabilities could reach between $100 million and $500 million. To navigate through this chapter, they’ve secured $20 million in funding.
Reports indicate that the company is facing challenges in keeping up with rival job platforms, especially aggregators and social media sites like LinkedIn.
