Peer Street, Inc. and its affiliated companies, headquartered in El Segundo, have filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The filing comes after the company laid off two-thirds of its employees earlier this year.

Founded in 2013, PeerStreet was a platform for online investing in real estate debt. The company said its platform enabled accredited investors, funds, and institutions to access certain real estate-related debt investments that were historically difficult to invest in, and permitted lenders and borrowers to access capital that has been historically difficult for them to access.

In reporting the filing, the Wall Street Journal cited “reduced mortgage demand and scarcer venture-capital funding” as factors.

Through its bankruptcy filing, PeerStreet will seek to sell substantially all of its assets, including its mortgage loan assets and technology platform, in a series of transactions intended to maximize value for all of PeerStreet’s stakeholders.

Pictured: PeerStreet headquarters in El Segundo. Photo courtesy of Continental Development.

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