REX Homes backed an antitrust suit and NAR counter-sued – but “The American Genius” says multiple signs, including employee interviews, suggest it ceased operations.
AUSTIN, Texas – The company backing an antitrust suit against the National Association of Realtors® (NAR) appears to be out of business, at least temporarily, according to “The American Genius” writer Lani Rosales.
REX Homes and NAR have faced each other in court recently. REX initially backed a lawsuit against the national association, and NAR then sued REX, claiming REX discouraged buyers and sellers from “obtaining the pro-consumer, pro-competitive benefits provided by NAR members and independent, local multiple listing services marketplaces.”
While REX Homes’ website continues to function, hosting listings and posting the names of leadership, Rosales points to a number of signs suggesting it ceased operations on Tuesday:
- Staff working in REX’s two Texas-based offices confirmed that their “doors are literally closed.”
- Some Glassdoor user reviewers say the company has shut down.
- Some LinkedIn users – former REX Homes employees – have added #OpenToWork signs to their profiles. Some also say the company closed; some say their department dissolved; some say the entire company collapsed.
- Rosales says signs of trouble have been surfacing over the past year, and “everyone we’ve spoken to in the last year has cited an imminent demise of the company as a whole.”
- REX Homes had two layoff events over the past year. Last August, it laid off 60 people; in October it laid off another undisclosed number when it shut down New York and Chicago offices.
- Also in October, REX Homes said internally that it would be joining the local multiple listing services (MLSs), a move Rosales calls shocking since the company’s business structure was based on “magical proprietary tech as well as their bypassing of the MLSs to save consumers thousands of dollars.” The company called it a “restructure.”
- Various financial changes over the past year also suggest the company has been in trouble, including “several rounds of private equity funding,” talk of an IPO, and other things.
It’s not clear how REX Homes’ problems could impact lawsuits with NAR. Rosales wonders “how a non-existent company can pursue a class action lawsuit,” but says there have been no case updates.
Source: The American Genius, Lani Rosales, May 11, 2022
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