CareerBuilder+Monster Files for Bankruptcy, Sells Key Assets

CareerBuilder + Monster, a prominent player in the online recruitment industry, has filed for Chapter 11 bankruptcy protection under U.S. bankruptcy law. The company, headquartered in Chicago, was formed last September through the merger of CareerBuilder and Monster. The company has agreed to sell its most well-known business, the recruitment platform, to JobGet, which owns an app for gig workers. Additionally, CareerBuilder + Monster has agreed to sell its software services business, which serves federal and state governments, to Valsoft, a Canadian software company. The company will also sell the military.com and fastweb.com websites to Valnet, a Canadian media company.

The buyers have agreed to act as "stalking horse bidders," meaning the transactions will proceed unless a better offer is received. The specific terms of the deals have not been disclosed. According to documents filed with the Delaware Bankruptcy Court, CareerBuilder + Monster's assets range from 50 million to 100 million dollars, while its liabilities range from 100 million to 500 million dollars. The company is currently raising 20 million dollars in financing to maintain operations during the bankruptcy process.

The chief executive officer stated that CareerBuilder + Monster is facing a "challenging and uncertain macroeconomic environment." The CEO believes that a court-supervised sale process is the best way to maximize value and preserve jobs. Public reports indicate that the company has struggled to compete with other recruitment platforms, including aggregators and social media sites like LinkedIn. CareerBuilder + Monster is jointly owned by Apollo Global Management, a private equity firm, and Randstad, a Dutch human resources company. During the restructuring process, the company is being advised by Axiom Consulting Partners and Ropes & Gray LLP.