Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm News

From Predator to prey: The details of CTPartners Chapter 11 Filing

Author: Joel R. Glucksman

Date: July 24, 2015

Key Contacts

Back

Last week CTPartners Executive Search Inc. announced it was voluntarily filing for Chapter 11 bankruptcy protection, according to the New York Post.

Once the seventh-largest executive search firm in the U.S., CTPartners recently reported that it will suspend operations by June 30.

CTPartners heads into Chapter 11

CTPartners recently disclosed that its $61 million asset sale to rival firm DHR International will not be enough to prevent the company from seeking bankruptcy protection. In the announcement, the company stated that its cash resources are depleted to the point where it will run out of money by the end of the month, barring an 11th-hour quick sale. However, the sale of the company will be difficult as DHR has only agreed to buy certain assets from CTPartners, including 250 employees at 17 offices in Europe and Dubai.

The bankruptcy filing was significant because the company had begun expansion plans with takeover bids for overseas competitors in December. However, when sexual discrimination scandals emerged in May, the company’s stock price plummeted by 33 percent. Compounded by a drop in earnings forecasts, shareholders sued the company and its top executives, asserting claims that the company withheld information about the scandals to inflate stock prices.

With its stock price eventually dropping from $24 to somewhere between $7-$8 per share, one of the firm’s majority stakeholders, Maguire Asset Management, pressured the company to find a buyer. Tim McGuire, the managing partner, claimed in The Deal that the company knew something was wrong when DHR reduced its ownership stake in CTPartners to only four percent.

“The management and board made a lot of mistakes,” McGuire commented. “I was lucky enough to sell my position. [CTPartners] dropped the ball.”

Sexual discriminator allegations

Following more than a dozen sexual discrimination claims, the company was forced to negotiate an equity sale for more than $12 million. Shortly thereafter, CTPartners obtained $12.5 million in debt financing comprised of a second-lien note purchase agreement because it had violated its covenant, leaving the company no choice but to sell. Noted Scott Scanlon, CEO of Hunt Scanlon Media LLC, the company’s descent escalated as 65 recruiters worth more than $75 million in billings left the firm.

Due to the fact that CTPartners depends largely on human capital, the defection of consultants and recruiters forced the company into a quick decision on its future.

The sale

As CTPartners contemplates its future, its reputation and financial standing remain irreparably damaged. With the asset sale, DHR significantly expands its international presence with an additional $75 million in top line assets, and now intends to expand to 70 offices worldwide, boasting a workforce of more than 1,000 personnel.

Are you a creditor in a bankruptcy?  Have you been sued by a bankrupt?  If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Feedspot Names Government & Law Blog One of the Top Public Law Blogs post image

Feedspot Names Government & Law Blog One of the Top Public Law Blogs

FeedSpot Recognizes Donald Scarinci’s Government & Law Blog One of the Top 20 Public Law Blogs Little Falls, NJ – May 22, 2025 – Scarinci Hollenbeck, LLC is honored to share that Managing Partner Donald Scarinci’s Government & Law blog has been listed by FeedSpot.com as one of the “20 Best Public Law Blogs and […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Feedspot Names Government & Law Blog One of the Top Public Law Blogs"
Scarinci Hollenbeck's Ron Bienstock Speaks at 100th Bomb Group's 2025 Reunion post image

Scarinci Hollenbeck's Ron Bienstock Speaks at 100th Bomb Group's 2025 Reunion

SH Partner and 100th Bomb Group Foundation Legal Counsel Discussed The Nuremberg Trials and the Law May 21, 2025 – Little Falls, NJ – Scarinci & Hollenbeck, LLC is proud to share that partner Ronald S. “Ron” Bienstock recently spoke at the 100th Bomb Group Biennial Reunion, held May 15-18, 2025, in New Orleans. The […]

Author: Ronald S. Bienstock

Link to post with title - "Scarinci Hollenbeck's Ron Bienstock Speaks at 100th Bomb Group's 2025 Reunion"
FeedSpot Names Donald Scarinci’s Constitutional Law Reporter One of the Top 100 Legal Blogs  post image

FeedSpot Names Donald Scarinci’s Constitutional Law Reporter One of the Top 100 Legal Blogs 

Little Falls, NJ – May 1, 2025 – Scarinci Hollenbeck, LLC is proud to share that Managing Partner Donald Scarinci’s Constitutional Law Reporter blog has been listed by FeedSpot.com as one of the “Top 100 Legal Blogs.” No Aspect of the advertisement has been approved by the Supreme Court. Feedspot, a content reader that curates websites of […]

Author: Donald Scarinci

Link to post with title - "FeedSpot Names Donald Scarinci’s Constitutional Law Reporter One of the Top 100 Legal Blogs "
FeedSpot Names Donald Scarinci’s Government & Law Blog One of the Top 80 New Jersey Blogs  post image

FeedSpot Names Donald Scarinci’s Government & Law Blog One of the Top 80 New Jersey Blogs 

Little Falls, NJ – May 1, 2025 – Scarinci Hollenbeck, LLC is proud to share that Managing Partner Donald Scarinci’s Government & Law blog has been listed by FeedSpot.com as one of the “80 Best New Jersey Blogs and Websites in 2025.” *No Aspect of the advertisement has been approved by the Supreme Court of New […]

Author: Donald Scarinci

Link to post with title - "FeedSpot Names Donald Scarinci’s Government & Law Blog One of the Top 80 New Jersey Blogs "
Nathanya G. Simon Named to ROI-NJ Influencers "Women in Business" 2025 List post image

Nathanya G. Simon Named to ROI-NJ Influencers "Women in Business" 2025 List

Scarinci Hollenbeck Partner Nathanya G. Simon named by ROI-NJ to the “ROI Influencers: Women in Business” list for fourth consecutive year Scarinci Hollenbeck Partner Nathanya G. Simon has been named by ROI-NJ to the “ROI Influencers: Women in Business” list for 2025. After four decades of practice, Nathanya’s pioneering influence in the field of special […]

Author: Nathanya G. Simon

Link to post with title - "Nathanya G. Simon Named to ROI-NJ Influencers "Women in Business" 2025 List"
SH Partner Angela Turiano Named Director of Legislative Affairs for SHRM Princeton post image

SH Partner Angela Turiano Named Director of Legislative Affairs for SHRM Princeton

Congratulations Angela Turiano on appointment as Director of Legislative Affairs for SHRM Princeton April 17, 2025 – Little Falls, NJ – Scarinci & Hollenbeck, LLC congratulates Partner Angela Turiano on her appointment as Director of Legislative Affairs for SHRM Princeton. Along with serving as a member of SHRM Princeton’s leadership team, Angela will monitor pending legislative, regulatory, […]

Author: Angela A. Turiano

Link to post with title - "SH Partner Angela Turiano Named Director of Legislative Affairs for SHRM Princeton"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!