Xceligent Shuts Down Operations, Files For Chapter 7 Liquidation

December 14, 2017 | By Jon Banister and Ethan Rothstein | bisnow.com

Xceligent is closing, effective immediately.

London-based Daily Mail and General Trust, which owns commercial real estate data firm Xceligent, announced Thursday Xceligent's board has decided to file for Chapter 7 liquidation. A court-appointed trustee will distribute the company's assets.

The decision comes one year to the day after Xceligent's legal battle with commercial real estate data giant CoStar began. DMGT said that under the Chapter 7 law it holds no liability for the costs associated with the litigation, which will be stayed until a trustee is appointed.

Xceligent's 250 employees were sent a memo at 4:08 p.m. CT, notifying them of the company's closure and giving them 30 minutes to take all of their belongings, after which time they would not be allowed to re-enter the Kansas City, Missouri, headquarters.

All Xceligent employees were terminated, a DMGT spokesman said, effective immediately, and the company's website has been shut down.

The decision follows an October leadership shake-up in which founder and CEO Doug Curry left the company and was replaced by former Hanley Wood CEO Frank Anton. DMGT told its investors on Nov. 30 it had written Xceligent's value down to zero and was reviewing all business opportunities.

Anton took over a strategic business review the Xceligent board started several months ago, and the result of that review led the board to decide to shutter the company and liquidate its assets. The review was undertaken after the company's expensive expansion into New York City, which formally launched in June, did not meet expectations.

"Quite a lot has changed over the last six months," the DMGT spokesman said. "The Xceligent management team ... carried out the strategic review in light of the funding limit set by DMGT. Their conclusion was there wasn't a sustainable option for the operation of the business."

The legal battle centered around CoStar

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