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Phoenix-Based Realty Executives Plans Chapter 11 Reorganization

Perhaps it is just another sign of our faltering real estate market, as Phoenix-based Realty Executives seeks protection under chapter 11 of the bankruptcy code. According to owner Richard Rector, the company is currently working on adjustments (such as lease renegotiation and cutting expenses) that would allow the company to continue in our sub-optimal real estate economy.

However, recent disputes with landlords have interfered with this restructuring plan. According to Rector, these disputes have escalated to agents being locked out of their offices on three separate occasions. This is what pushed the company to seek protection under chapter 11.

 “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.”

Let’s hope that this is simply a small hiccup in what will be a successful run for Realty Executives. As a bankruptcy lawyer, I am all to aware of the current hardships that our residents are facing. We are all ready to move forward from the economic downfall we have experienced as of late.

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