In a memo to staff and agents, Charles Dunn Co. Inc. gave notice Wednesday that the company’s brokerage business was folding.
The firm, however, will continue operations of Charles Dunn Real Estate Services, the company’s property management group.
“With a heavy heart, we will close the current operations of Charles Dunn Company Inc. effective Thursday, November 1, 2018,” wrote Chief Operating Officer Patrick Conn.
According to the Business Journal’s 2016 statistics, the firm had roughly 50 commercial real estate brokers.
The board of directors concluded that it was in the company’s best interest to cease operation “before we incur further expenses and potential losses,” Conn stated in the memo.
“As some of you may know, over the past year we have explored various options to ensure the stability and future growth of Charles Dunn Company, Inc.,” Conn continued. “This included a possible sale of the firm. Despite our diligent efforts, we were unable to find viable options and we have also come to the realization that a sale of the company will not occur as we had hoped. We believe it’s unfair to all of you to continue operating the company without a sustainable business plan and dedicated leadership.”
Earlier this month, the company’s brokerage side saw a high-profile departure. Veteran broker William Boyd, who managed the Glendale office, took three other brokers, including Linda Lee, to open a Glendale office for Seattle-headquartered real estate firm Kidder Mathews. When reached at Boyd and Lee’s new office, which opened Oct. 15, the pair expressed shock and sadness over the news.
“We appreciated our time there,” Boyd said. “But an announcement this sudden, with no advance notice, is a horrible punch to the stomach for the brokers and salaried staff.”
“I am most concerned about the staff that have lost their jobs overnight,” added Lee. “They work so hard to assist the brokers. I just hope they find new employment soon with firms that will appreciate their work.”
According to the memo, the company’s focus in November now shifts to ending the brokerage business, including closing current transactions and completing existing listing assignments. No new deals or assignments will be undertaken.
Charles Dunn Co. is based in Los Angeles and has offices in West Los Angeles and Sherman Oaks. The company's Glendale office closed with Boyd's departure.
Calls to Conn were not returned by press time.