RealTime IT News

Jobs.com May Call it Quits

jobs.com filed for Chapter 11 protection with the U.S. bankruptcy Court in the Northern District of Texas in Fort Worth.

A competitive marketplace and a "high burn rate" were the catalysts behind the filing, according to Eric Villines, director of publication relations.

"There are 20,000 job boards out there, all of which cater to audiences with varying degrees of technical expertise" he explained. "Even though our sales department increased our revenue by 400 percent over the last year, it was simply not enough.

"Closing our doors now is the mature thing to do," he continued. "Many dot-com companies held off closing until there were no other choices. However, jobs.com has several million in the bank, $40 million in advertising dollars, a good URL and a good value. Rather than burn our shareholders monies, we thought it best to file for Chapter 11 and get general protection."

The company began laying off employees at the beginning of the new year, Villines noted. "In our heyday we had 100 employees, about 35 were let go in January. Additional severance packages were handed out last week. At present, we have about 11 people on staff fulfilling sales, legal, Web design and other functions."

The company will continue operating its core business for the next 60 to 90 days. Villines anticipates during that time the company will either be sold or, better yet, a new business plan will be put into effect.

"An additional business plan is not impossible," he said. "The government encourages people to find a safe way to get out of this position. A cash infusion would be nice, but it is unlikely in light of the market downturn."

The online job board launched in 1999 and, to date, has received more than $100 million in funding from idealab Capital Partners, CBS/Viacom and others.

The firm additionally has alliances with a group of specialized recruiting companies such as Recruiters-Aid, IMDiversity.com and Scholastic Recruits.