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HFZ lays off staff as legal and financial problems mount
Developer contending with lawsuits and foreclosure actions tied to several condo projects

HFZ Capital Group has laid off a number of employees as the developer’s financial and legal troubles mount.

Two sources familiar with the matter said the layoffs and furloughs mainly affected people working in the construction side of the business and also those at the company’s main office at 600 Madison Avenue.

“Unfortunately, due to the prolonged nature of the pandemic and its expected timeline, HFZ has to furlough some of its employees, with the goal being to bring them back,” a spokesperson for HFZ said in an email. “Other employees were laid off.”

The developer has been under pressure as it deals with a slew of lawsuits from lenders and subcontractors over delinquent loans and unpaid bills tied to several of the firm’s Manhattan condos.

The layoffs, which come before the holiday period and as New Yorkers brace for another wave of Covid-19, will affect an estimated 20 to 30 jobs, according to a person with knowledge of the situation. That number could not be independently corroborated by The Real Deal.

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TRD