End of the hunt for Foxtons
Like warm beer and David Beckham, Foxtons Inc. looks like another popular British concept that will fail in the U.S. The residential real estate brokerage firm reported Wednesday that it may go out of business due to slumping home sales.
A representative of the West Long Branch, N.J. firm, which has branch offices throughout New Jersey and southern New York State told The Asbury Park Press Wednesday that it is considering bankruptcy protection and will lay off 350 of its 380 workers. It also said it will continue to keep 4,400 listings on the market.
Senior vice president John Blomquist told the newspaper that the company no longer has the liquidity to operate as a going concern and may have to consider bankruptcy.
Several calls to company headquarters and branch offices were not returned today, and the recording this morning said to call back during business hours.
Foxtons, which had great success in London, opened in the U.S. in March of 2000. It tried to differentiate itself from competitors by undercutting the industry's 6% commission standard by paying its agents salaries and charging customers only a 2% commission.
But that policy was later modified to get better participation in showing Foxtons' listings from other Multiple Listing Services listing agents who adhered to the 6% commission policy.
According to its website, Foxtons' claims a unique employee-based business model that includes "branded' company cars for agents, the most conspicuous of which are British Mini Coopers emblazoned with the company logo. It also said its agents are all equipped with the latest communication technologies and that it had Internet virtual tours and a Web page for every home it listed.
It also said agents work "8 a.m. to 8 p.m., seven days a week."
But apparently not this week, as calls to various Foxtons' offices went unanswered.
Marshall McKnight, a spokesman for the New Jersey Department of Banking and Insurance, which also monitors real estate licensing, said today that after checking with the state's investigators, "as far as we know Foxtons is still open for business. That's what they told us this morning.
"We've had several calls [from concerned Foxtons customers], so we're monitoring them for branch compliance, because if they do close an office they have to tell us. I can't explain why they're not answering the phone," McKnight said.
According to a source, employees at one branch turned in their laptops and company cars in the building parking lot at 11 a.m. today and were told the building was off limits and that they would be getting their paychecks tomorrow.
"I guess people will be able to get a great deal on a Mini Cooper with Foxtons logos all over them," she said.
Financial Week
By Frank Byrt
September 27, 2007
A representative of the West Long Branch, N.J. firm, which has branch offices throughout New Jersey and southern New York State told The Asbury Park Press Wednesday that it is considering bankruptcy protection and will lay off 350 of its 380 workers. It also said it will continue to keep 4,400 listings on the market.
Senior vice president John Blomquist told the newspaper that the company no longer has the liquidity to operate as a going concern and may have to consider bankruptcy.
Several calls to company headquarters and branch offices were not returned today, and the recording this morning said to call back during business hours.
Foxtons, which had great success in London, opened in the U.S. in March of 2000. It tried to differentiate itself from competitors by undercutting the industry's 6% commission standard by paying its agents salaries and charging customers only a 2% commission.
But that policy was later modified to get better participation in showing Foxtons' listings from other Multiple Listing Services listing agents who adhered to the 6% commission policy.
According to its website, Foxtons' claims a unique employee-based business model that includes "branded' company cars for agents, the most conspicuous of which are British Mini Coopers emblazoned with the company logo. It also said its agents are all equipped with the latest communication technologies and that it had Internet virtual tours and a Web page for every home it listed.
It also said agents work "8 a.m. to 8 p.m., seven days a week."
But apparently not this week, as calls to various Foxtons' offices went unanswered.
Marshall McKnight, a spokesman for the New Jersey Department of Banking and Insurance, which also monitors real estate licensing, said today that after checking with the state's investigators, "as far as we know Foxtons is still open for business. That's what they told us this morning.
"We've had several calls [from concerned Foxtons customers], so we're monitoring them for branch compliance, because if they do close an office they have to tell us. I can't explain why they're not answering the phone," McKnight said.
According to a source, employees at one branch turned in their laptops and company cars in the building parking lot at 11 a.m. today and were told the building was off limits and that they would be getting their paychecks tomorrow.
"I guess people will be able to get a great deal on a Mini Cooper with Foxtons logos all over them," she said.
Financial Week
By Frank Byrt
September 27, 2007
Labels: discount real estate brokerage, Foxtons, Foxtons bankruptcy
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