Dive Brief:
- CareerBuilder + Monster on Tuesday filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, according to a press release.
- The company said it has entered into asset purchase agreements with three companies to sell parts of the business, each of which will act as “stalking horse” buyers — companies that set starting bids — in the bankruptcy sale process.
- Jeff Furman, CEO of CareerBuilder + Monster, attributed the move to “a challenging and uncertain macroeconomic environment.” Furman said the company “ran a robust sale process and carefully evaluated all available options. We determined that initiating this court-supervised sale process is the best path toward maximizing the value of our businesses and preserving jobs."
Dive Insight:
The filing comes almost exactly a year after Monster and CareerBuilder announced plans to merge. At the time, the companies said, “As the world of work continues to evolve, this combination will allow both businesses to benefit from shared resources and solutions to deliver greater value and opportunities to both talent and employers.”
The merger was finalized in September 2024 and gave Apollo, the owner of CareerBuilder, the controlling interest and Randstad, the owner of Monster, a minority interest in the joint venture. One analysis suggested the merger was an attempt to make gains in a job board market led by Indeed.
CareerBuilder + Monster has $50 million to $100 million in assets and $100 million to $500 million in debts, according to court filings.
The company said it is restructuring its U.S. businesses and “conducting a comprehensive evaluation of the strategic alternatives available for certain 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. As a company in the business of people and talent management, reducing our workforce is always a painful step to take,” Furman said.
As part of the sale process, CareerBuilder + Monster entered into asset purchase agreements with JobGet Inc. for the company’s job board business; Valnet Inc. for Monster Media Properties, which includes www.military.com and www.fastweb.com; and Valsoft Corp. for Monster Government Services, a human capital management software services provider for state and federal governments. The sales are expected to close in the coming weeks, if granted court approval, the company said.
CareerBuilder + Monster also is working to finalize up to $20 million in debtor-in-possession financing with Blue Torch Capital to allow the company to continue to operate throughout the bankruptcy process, according to the release. It also filed motions seeking court permission to continue to pay employee wages and benefits during bankruptcy.
