CareerBuilder + Monster, which once dominated online job boards, file for bankruptcy

CareerBuilder + Monster, once giants in the online recruitment industry, have filed for Chapter 11 bankruptcy protection. The Chicago-based company, created through a merger of CareerBuilder and Monster, announced its plans to sell its businesses.

The company has agreed to sell its job board operations, its most recognizable business, to JobGet, a company with an app for gig workers. Additionally, CareerBuilder + Monster will sell its software services business for federal and state governments to Canadian software company Valsoft, and the military.com and fastweb.com websites to Canadian media company Valnet. These sales are subject to better offers as the buyers have been named “stalking horse” bidders.

With assets ranging from $50 million to $100 million and debts from $100 million to $500 million, CareerBuilder + Monster is seeking $20 million in financing to continue operations during the bankruptcy process. Chief Executive Jeff Furman stated that the company has faced challenges in a tough economic environment, leading to the decision for a court-supervised sale to maximize value and preserve jobs.

Competition from other job platforms, including aggregators and social media sites like LinkedIn, has posed difficulties for CareerBuilder + Monster. The company, owned by private equity firm Apollo Global Management and Dutch staffing company Randstad, has enlisted AlixPartners and law firm Latham & Watkins to advise on its restructuring efforts.

This news, reported by Jonathan Stempel in New York, highlights the changing landscape of the online recruitment industry and the challenges faced by once dominant players like CareerBuilder + Monster. The company’s decision to file for bankruptcy and sell its businesses marks a significant shift in the industry, as newer platforms and technologies continue to disrupt traditional recruitment methods.