The online recruiting giants CareerBuilder and Monster have filed for Chapter 11 bankruptcy protection to sell their core business operations including their job board platforms.
The Chicago-based company has established agreements to sell multiple essential business divisions after its merger last year. JobGet will acquire the job board platform while Canadian firms Valsoft and Valnet will obtain government software services and operate Military.com and Fastweb.com.
The Delaware court documents indicate the company possesses assets worth between $50 million and $100 million while facing liabilities that exceed $500 million. The company needs $20 million in funding to continue operations during its restructuring process.
The company’s CEO Jeff Furman explained that the organization faced challenges from both the economic conditions and growing market competition. CareerBuilder and Monster lost their status as leading job search brands because of the rise of LinkedIn and aggregators and professional networks.
The court-supervised sale process enables JobGet and other bidders to compete for the assets while serving as “stalking horse” buyers. The company which established digital recruitment standards now faces bankruptcy because of industry changes and financial challenges.
