Real estate services firm Grubb & Ellis Co. has filed for bankruptcy protection. Most of the company’s assets will be sold to BGC Partners Inc.
Perhaps unsurprisingly, the company pointed to the decline in housing markets that began in 2007 as a major source of its financial troubles. The strain placed upon the company’s money supply was so heavy that it became difficult to continue normal operations. The company tried to find a buyer before declaring bankruptcy, but no such buyer was found, leading to the Chapter 11 filing.
Thomas P. D’Arcy, Chief Executive Officer of Grubb & Ellis, said in a statement that the company’s day-to-day operations will continue. Meanwhile, BCG hopes the move will help them “to build a premier position in real estate services.”
Grubb & Ellis, based in Santa Ana, California, listed $150 million in assets and $167 million in debt liabilities. The company reported roughly 12,000 real estate transactions, such as sales and leases, in 2011. The company is also involved in property management, providing services for a total of over 250 million square feet of property.
It is not clear how bankruptcy will affect the firm’s clients.
Unsecured creditors of Grubb & Ellis have asked a judge to set a date for preliminary bids prior to a March 21 formal auction.
Bloomberg’s report can be found here.