Austin-based real estate development firm StoryBuilt is grappling with significant financial difficulties, resulting in the layoff of 137 employees and the appointment of an independent trustee to address its financial crisis.
The recent layoffs follow a series of leadership changes and an earlier decision to furlough a substantial portion of its workforce. Once boasting a team of 250 employees, StoryBuilt’s current staff count remains uncertain.
The company had been pursuing external funding and had plans to bring back furloughed staff to resume operations. However, these efforts were hampered by an inability to secure sufficient capital, as stated in a communication to its employees.
Formerly known as PSW Real Estate and established in 1991, StoryBuilt had shown promise with a revenue of nearly $72 million two years ago. However, its ambitions for expansive growth were not realized, leading to the recent layoffs and a significant reorganization of its executive team, as conveyed in a letter from CEO Anthony Siela to investors.
In an attempt to address its financial challenges, StoryBuilt had sought $10 million in rescue capital from its investors. Additionally, the company has faced further setbacks, having been confronted with three lawsuits this year alone. These legal actions collectively seek over $1.5 million in relief.