CareerBuilder and Monster File for Bankruptcy, Seek Buyers for Core Assets
Once titans in the online job search industry, CareerBuilder and Monster—now operating under a joint entity—have filed for Chapter 11 bankruptcy protection. The Chicago-based company, formed after the two job board pioneers merged in September, announced on Tuesday that it will be selling several of its key business units in a bid to restructure and stay afloat.
The company has reached a deal to sell its core job board operations to JobGet, a platform popular among gig workers. In addition, it plans to divest its government-facing software services business to Canadian software firm Valsoft and two of its well-known digital properties—military.com and fastweb.com—to Canadian media company Valnet.
These buyers will act as “stalking horse” bidders in the bankruptcy process, meaning their bids set the baseline for higher offers. The financial details of the deals have not been disclosed.
Court documents filed in Delaware indicate that the company holds between $50 million and $100 million in assets and owes between $100 million and $500 million in liabilities. CareerBuilder and Monster are seeking $20 million in debtor-in-possession financing to maintain operations throughout the bankruptcy proceedings.
CEO Jeff Furman attributed the move to an “uncertain and challenging macroeconomic environment” and said a court-supervised sale is the best way to preserve value and protect jobs.
The combined company has faced mounting competition in recent years from newer platforms and aggregators like LinkedIn and Indeed, leading to a decline in relevance and market share.
CareerBuilder + Monster is jointly owned by private equity firm Apollo Global Management and Dutch staffing giant Randstad. Advisory support during the restructuring process is being provided by AlixPartners and Latham & Watkins LLP.
