Key facts
- HouseCanary and five affiliated companies filed for Chapter 11 bankruptcy protection.
- The filing occurred in the U.S. Bankruptcy Court for the District of New Jersey.
- The bankruptcy filing was prompted by a lender's efforts to foreclose on a debtor's asset.
- The debtors have more than $50 million in assets and at least $50 million in liabilities.
- HouseCanary has requested additional time to file detailed financial schedules due to the speed of the filing.
HouseCanary and five affiliated companies have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. The voluntary petitions were filed on Tuesday. The five debtors include HouseCanary Inc., ComeHome Inc., HouseCanary R&D LLC, HouseCanary (CT) Inc., HouseCanary Certified Analytics Inc., and House Canary New Jersey Inc. The cases will be jointly administered.
The bankruptcy filing was initiated due to a lender's efforts to foreclose on one of the debtors' assets on an expedited basis, according to a legal filing. The identity of the lender and the specific asset were not disclosed. In a separate filing, the debtors stated they possess more than $50 million in assets and at least $50 million in liabilities.
HouseCanary has requested additional time from the court to file detailed schedules of its assets, liabilities, and financial affairs, citing the rapid nature of the bankruptcy filing. The company noted that its remaining workforce is focused on the restructuring process. The news was first reported by Law360.
HouseCanary is known for its partnership with Google, which allows the tech giant to display home listings directly in search results. This pilot program was launched nationwide in June. In July, HouseCanary CEO Chris Rediger indicated that progress might be slow due to the need to establish agreements with each Multiple Listing Service (MLS) for listing feeds. By August, Rediger reported positive feedback from brokers and consumers and significant participation from MLSs and data providers.