Tuesday, March 3, 2009

The Ryness Company files for BK

The Ryness Company, a well-known third-party firm providing sales and marketing services to new home builders, has filed for bankruptcy protection. From a BigBuilderOnline.com story:

The troubled housing market claimed yet another victim late last week. Danville, Calif.-based The Ryness Company, a third-party sales and marketing services and market data firm, filed for Chapter 11 bankruptcy protection Friday in the U. S. Bankruptcy Court, Northern District of California...

To blame for the company's current conditions are a variety of factors, not the least of which are steep drop-offs in new-home sales levels in the company's core markets...

However, other sources familiar with the company point to some untimely acquisitions and business partnerships. In 2004, the company expanded into Arizona, Nevada, and the Pacific Northwest. A year later, the company launched Sullivan Group Real Estate Advisors, a national market research and advisory firm. And then in 2006 came the acquisition of The Marketing Directors.

But of late, many of the partnerships have crumbled. Sources at the Sullivan Group have stated that the two firms parted ways two years ago. And other local sources stated that the parent corporation has turned some regional operations, particularly in California, back over to the original owners. Not to mention growing strains with key financial sources, leading to legal issues in 2008.

However, some of Ryness' builder clients appear to be unfrazzled by the news of the company's bankruptcy. One company's Northern California group that uses Ryness for its sales staffing, indicated that it has been business as usual since the filing. In fact, management indicated that because many of the issues stem from the company's East Coast acquisition of The Marketing Directors, it expected little fallout in California. Management also added that that it is pleased with its relationship with the Ryness team and looks forward to continuing to do business with them...

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