Realty Executives Phoenix files for bankruptcy reorganization | Inman News

Realty Executives Phoenix files for bankruptcy reorganization

Franchisor Realty Executives International not included in filing

By Matt Carter, Monday, May 2, 2011.

Inman News™

Phoenix-based brokerage Realty Executives Inc. filed for Chapter 11 bankruptcy reorganization on Saturday to give the company breathing room from creditors as it cuts overhead expenses and rolls out new pricing plans for agents.

Owner Richard Rector said Friday the 1,100-agent brokerage has been renegotiating leases on 14 offices Phoenix and Tucson with an equal number of landlords. Difficulties with two landlords that resulted in Realty Executive agents being temporarily locked out of three offices led Rector to conclude that seeking protection from creditors in bankruptcy court was his best option.

"It’s impossible for agents and brokers to do their business with those kinds of interruptions," Rector said. "Unfortunately, a couple of landlords have been uncooperative, forcing our hand and putting other landlords who we’d worked things out with at a disadvantage, too."

Realty Executives was sued by one of its landlords last month. The lawsuit alleges that after obtaining a rent deferment and lease amendment, Realty Executives moved its Pinnacle Peak office in Scottsdale to another building, leaving $142,964 in rent and other sums due under its lease unpaid.


To continue reading sign in to your Premium Membership Premium Member account.

Premium Membership Premium Members have full access to all news archives.

Buy Now Purchase 1-year Premium Membership – $149.95

Copyright 2011 Inman News

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.