Homes.com Inc., a provider of marketing and productivity applications for real estate and home services professionals, said its subsidiary Homes.com LLC, has filed for Chapter 11 bankruptcy. According to the company's attorney David Caplan, Homes.com is in a legal dispute with the landlord at its server center in Florida.

"The landlord is trying to kick them out, and rather than fight it out court, they decided to take the Chapter 11 route," Mr. Caplan said. Homes.com Inc. announced last week that it laid off 150 employees, 40% of its staff, in an effort to preserve cash. "The company is definitely going to undergo some financial restructuring, but it is completely operational," said Mr. Caplan.

Homes.com Inc. raised $38.5 million in its Series A funding in March 2000 from investors including Comdisco, Hummer Winblad Venture Partners, Kinetics Ventures, and Lighthouse Capital.

Published: March 26, 2001

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