On Tuesday, Douglas Elliman announced that it would not acquire John Daugherty Realtors as previously planned due to a “legal technicality.” On Friday, Inman received a tip that John Daugherty Real Estate, Inc. filed for Chapter 11 bankruptcy.
“I want to inform you that John Daugherty Real Estate, Inc., has filed for Chapter 11 Bankruptcy today,” an internal email from John Daugherty, Jr., CEO of John Daugherty Realtors, stated.
“We have an incredible team of professionals working with us and are doing everything we can to pay you your commission checks,” the letter continued.
Inman reached out to John Daugherty Realtors, but requests for comment were not immediately returned.
The acquisition by Douglas Elliman had been announced in December and was expected to close by January with the Houston firm still operating under the banner of John Daugherty Realtors. Although the acquisition fell through, 125 John Daugherty agents have already joined Douglas Elliman, with more expected to be absorbed, according to a report by the Houston Chronicle.