Country’s largest brokerage firm Grub & Ellis files for bankruptcy

Grub & Ellis, a commercial real estate company that started with just one office in 1958, but grew to become the nation’s largest, has filed for Chapter 11 bankruptcy. They attribute the economic crisis on the decreasing demand for commercial properties.

In the bankruptcy documents filed on Monday, Grub & Ellis listed $150 million in assets with debts of $167 million. They have agreed to sell their assets to BGC Partners, a financial brokerage firm.

Michael J. Rispoli, the company’s chief financial officer said in the court documents that “the 2007-2009 meltdown of the financial markets,” and an unfortunate merger with NNN Realty in 2007 caused a dramatic drop in revenue from $312 million in 2007 to $173 million in 2009.

The turbulence on the real estate market resulted in a loss of high-performing brokers, which accounted for 30 percent of their revenue.

Grub & Ellis failed to find a buyer out of the bankruptcy process. BGC Partners has agreed to give the firm a $48 million loan so they can continue to operate during the process.

Bankruptcy may be the only option available to financial strapped business. A bankruptcy attorney can look at the financial documents and determine if a structured bankruptcy can help reduce or eliminate debt.

Bankruptcy lawyers can offer the troubled individual or business a solution to their growing debt. Depending on the filing a bankruptcy attorney can have some debts discharged and offer a plan to pay off secured debts.