Foxtons, Famous For 2% Real Estate Commissions, Goes Out Of Business

September 27, 2007

Newsday reports today that Foxtons, New York metropolitan area real estate powerhouse, 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 announced 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.”

“Releasing” appears to be a euphemism for “firing.” Just in case that didn’t come through loud and clear.

In a statement, John D. Blomquist, Foxton’s senior vice president and general counsel, said that “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.”

Posted in Real Estate Market News