Foxtons files for bankruptcy

[S.W.A.G]

Foxtons, the one-time 800-pound gorilla of the 2 percent marketplace in the New York metropolitan area, said it may file for bankruptcy and close its business, explaining it "can't stand in the way of a hurricane" that has come about as a result of the decline in the home mortgage industry.

The New Jersey-based company, which once rocked the real-estate industry by selling homes for as little as 2 percent commission -- compared to commissions of up to 6 percent at other brokers -- said in an announcement that it is "releasing" 350 of its 380 employees "and may be filing for bankruptcy protection in order to close the business in an orderly fashion."

No one answered the phone at the company's headquarters Thursday morning.



In a statement, John D. Blomquist, Foxton's senior vice president and general counsel, said the company had been "well run, very efficient" and had "a great team that has pioneered a new model in the real estate business -- a model which has proven itself and, we believe, will have lasting influence on our sector."

But, he added, "The plain fact is that we have been battling against a real estate market that recently has turned into a sharp decline, and the company no longer has the liquidity to operate as a going concern."

"We understand the impact of the action we are taking, but there comes a point where you can't stand in the way of a hurricane, and it is a property hurricane we are facing."

The company's announcement said that it has some 4,400 current listings and that it plans to "preserve the value of these listings to minimize customer disruption and to dedicate the anticipated revenues to pay creditors."

Foxtons created a huge advertising splash, spending close to $12 million a year on television, radio and billboard ads. It even used buses, bus shelters and subway platform ads to attract customers.

Beth Marten, who heads Home Buyer's Resource Center, a real estate agency in Baldwin that represents home buyers, said she was not surprised to learn that Foxtons announced it is filing for bankruptcy and may go out of business altogether.

"I predicted this would happen a year and change ago," Marten said.

Marten said the fees Foxtons paid brokers -- which she said at times was as low as 1 percent to 1 1/2 percent -- did not entice independent brokers or brokers who worked for other agencies to show homes listed by Foxtons.

"I saw them finally go up to 2 percent, but their listings were languishing," Marten said. "The broker was only going to get 1 or 2 percent. There wasn't a lot of interest in showing their houses."

She said also that she did not believe Foxtons hired the best-quality brokers. "They were questionable," Marten said, explaining that they priced the homes they were selling at levels that were higher than the market would allow.

"They just didn't have a clue," Marten said. "I don't think other brokers are going to miss them (Foxtons) at all."

Foxtons Web site said the agency opened for business in march 2000 in North America, and in the early years, had more than 1,000 employees and more than 10,000 homes for sale.

[italianchris11]

Good fuck them and there mini coopers that they give out to all there sales people

[S.W.A.G]

Good fuck them and there mini coopers that they give out to all there sales people

they have some hot bitches that work for them ...There sales people harrass the shit out of you

[janine9539]

i applied there 3 years ago for a processing position, thank god i didnt take the job.

i read this artical this morning, i was actually surprised to considering how good i thought they were

[RICKY]

You knew this was gonna happen. It sounds great on paper, but no realtor is going to bring anyone to look at your house......

[John Kennedy]

they've always been horrible.. who said they were good? It's funny how they're blaming a slowing market rather than how horribly run they are.

[RICKY]

I thought they charged a point instead of the 4-5 everyone else charged

[James Maxx]

I just love how they used to glorify a shitty house making it look like a mansion.

"As you walk through the hallway with original 1934 vinyl black and yellow flooring, you are welcomed to a spacious 85 square foot living/dining room complete with an efficiency kitchen that includes a retro-style beige refrigerator and stove. Glorious views of the pristene silver garbage cans outside the new brick and grass garden. Convenient to all shops, especially the smelly bodega down the corner and drug dealer hangout 2 blocks away, offering a wide assortment of paraphenelia. Be part of an ethnic mix of cultures, as you immerse your ears to vintage cars with chrome hubcaps and coffee can exhausts, blasting reggaeton and Mexican music."

[woo]

ok now countrywide's turn

[TheHipHopBillGates]

ok now countrywide's turn

Will never happen, with 20% of the US's mortgages, Warren Buffet & BOA already backing them, and soon an infusion from Goldman & JP Morgan, they'll be fine, they may have to trim a little fat if the Fed stops cutting rates(which unfortunately may not happen), but long term the should be ok.