Friday, February 22, 2008
SIRVA files Chapter 11 Bankruptcy
Unless you have been living under a rock, you have probably heard that SIRVA filed for Chapter 11 bankruptcy. SIRVA's stock has been plummeting for a while, so this didn't come as a huge surprise to anyone. Having announced earlier last year that they were around $800,000,000.00 (That's $800 Million) in the hole, with no assets to speak of, and a giant inventory of unsold houses, SIRVA decided to opt for a pre-arranged Chapter 11. So what happened? Well the company has gone from being publicly traded to privately held as all shares of stock fell to zero. The creditors have taken over ownership for now. Most North American and Allied agents that we have spoken to feel confidant that this too shall pass and everything will work itself out. With no major lay-offs to speak of thus far, the creditors are trying to keep things status quo as they dig out from this debt. What will happen in the future? It's hard to tell. Perhaps the agency families will take over, perhaps the company will sell to another party. Whatever it is, we will be sure to report it here when it happens.