Butler And Hosch, P.A. Blames Its Rapid Expansion For its Demise
One of Florida’s oldest foreclosure mills, Butler and Hosch, P.A. has shut its doors and laid off its entire staff. Butler & Hosch had been rapidly expanding its presence across the country.
Butler and Hosch, P.A. filed an Assignment for the Benefit of Creditors to Florida law firm Michael E. Moecker & Associates. Assignment for the Benefit of Creditors is the legal profession’s equivalent to a Chapter 7 bankruptcy.
According to Housing Wire,
“It is with great sadness that I report to all of you regarding the difficult financial status of Butler and Hosch and its affiliates (“BH”) which has resulted in the filing of the state court Assignments for the Benefit of Creditors (“ABC”). I have voluntarily stepped down as CEO and Senior Partner of BH. The control of the BH companies has been voluntarily placed in the hands of an experienced third-party fiduciary, Mr. Michael Moecker.”
The bankruptcy-style filing came out of the blue. The memo sent to employees cites the company’s aggressive growth over the past two years and how now there is not sufficient cash on hand to even meet payroll, according to the memo:
“How does the filing of these ABC’s cases impact you? Though Mr. Moecker has complete access to our assets, he will not have sufficient cash on hand to fund payroll at the end of this week. Without BH employees and attorneys there is no ongoing operation. BH cannot continue to function. To be clear, while I continue to hold out hope that our existing lender and/or strategic partners may provide an infusion of cash today, without it, BH will have no choice but to close its doors immediately.”