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Zethus Files for Chapter 7; C&W in Talks to Buy What Remains

DALLAS-As one company's lifeline folds, a key industry player opens talks to salvage the once-purported salvager. GlobeSt.com has learned that C&W could take all or part of Zethus. Realty IQ looks for another buyer.

By Connie Gore | Updated on March 07, 2001

DALLAS-Washington, DC-based Zethus Inc., once touted as the high-tech driver for standardizing real estate transactions, isn’t dead in the water, despite today’s revealed plan to file a Chapter 7 bankruptcy. Someone close to the situation has told GlobeSt.com that talks are beginning with New York City-based Cushman & Wakefield Inc. to pick up all or part of Zethus. The source won’t venture a guess as to where that leaves Manhattan-based RealtyIQ, which Goldman Sachs-backed Zethus was expected to purchase shortly.

Bruce Weissberg, RealtyIQ’s CEO, depicts this morning’s events as “interesting.” Where Zethus went wrong, says a Goldman Sachs source, is that it didn’t latch onto other investors in subsequent funding rounds. Zethus reportedly had fallen short in Goldman Sachs’ eyes to lure other investors to the fold.

In midyear 2000, Cushman and Wakefield struck an alliance with Zethus, but reportedly did not kick in any support money. The high-tech Zethus, an insider claims, had not gotten beyond the design stage for a transaction platform. Zethus had hoped to parlay itself into a revolutionary spot for a NASDAQ-type presence in the real estate industry.

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