"The fact is that we have been battling against a real estatemarket that recently has gone into a sharp decline," says JohnBlomquist, Foxtons' SVP/general counsel, in a statement. "Weunderstand the impact of the action we are taking, but there comesa point when you can't stand in the way of a hurricane."

As reported by GlobeSt.com, thecompany was founded in early 2000 by local businessman Glenn Cohenas YourHomeDirect. Billing itself as "the home of the 2%commission," the company rolled out an unproven volume-based butlow-service platform aimed at undercutting the standard 6%commission.

A couple of years later, the company picked up a $20-millioninvestment from the London-based Foxtons, which had a similarplatform, and its name was changed to YHD Foxtons. In mid-2003, theYHD part was dropped from the company's name, and the Londonoperation bought Cohen out entirely in 2004.