CareerBuilder + Monster has filed for Chapter 11 bankruptcy protection while announcing the sale of its major business units to three separate buyers as the job board company struggles with challenging market conditions.
The Chicago-based company entered asset purchase agreements with JobGet Inc. for its job board business, Valnet Inc. for Monster Media Properties including Military.com and Fastweb.com, and Valsoft Corporation for Monster Government Services.
The company initiated the voluntary bankruptcy process in the U.S. Bankruptcy Court for the District of Delaware to facilitate the court-supervised sales, which are expected to close in the coming weeks pending court approval.
Macroeconomic pressures force strategic restructuring
“For over 25 years, we have been a proud global leader in helping job seekers and companies connect and empower employment across the globe. However, like many others in the industry, our business has been affected by a challenging and uncertain macroeconomic environment,” said Jeff Furman, CEO of CareerBuilder + Monster.
The company conducted what it described as a robust sale process before determining that the court-supervised approach would best maximize business value and preserve jobs.
CareerBuilder + Monster is finalizing an agreement with Blue Torch Capital for up to $20 million in debtor-in-possession financing to maintain operations during the sale process. The company has filed motions seeking court authorization to continue paying employee wages and benefits.
Workforce reductions accompany asset sales
The restructuring includes workforce reductions across the company’s U.S. operations as part of cost-cutting measures. CareerBuilder + Monster is also evaluating strategic alternatives for some of its international businesses.
“As we work to complete the sale process, we are making difficult but necessary decisions to reduce costs and help ensure a seamless transition of our businesses,” Furman said. “As a company in the business of people and talent management, reducing our workforce is always a painful step to take.”
The three buyers will serve as “stalking horse” bidders in the court-supervised process, meaning their offers set the minimum bid amounts but remain subject to higher competing offers.
Continued operations during transition
The company plans to maintain normal operations and continue serving clients during the sale process. Vendors and suppliers will be paid in full under normal terms for goods and services provided after the bankruptcy filing date.
CareerBuilder + Monster combines the legacy of two major job board brands and describes itself as a global talent marketplace with over 50 years of combined expertise. The company provides digital recruitment solutions and workforce management services to employers while offering job search and career development tools to job seekers.
Court filings and information about the proceedings are available through the company’s claims agent, Omni Agent Solutions, at their dedicated website. See https://cases.omniagentsolutions.com/?clientId=3747
