According to an article in the Star-Telegram, Choice Homes, a Dallas-Fort Worth based builder is preparing to close its doors because it cannot secure the funding necessary to continue operating. A company that has been in business for over 21 years, Choice Homes is just one of many homebuilders who have closed its doors or filed for bankruptcy.
The article said:
“We are still talking with our lenders but the likelihood is we will be winding down our operations,” Choice Homes president Daniel Couture said Wednesday morning. “We are not filing Chapter 11” bankruptcy protection.
The move comes at a time when the housing market is being hit by foreclosures, bankruptcies and the decreased availability of credit. Millions of Americans who have enjoyed employment in the housing industry are now facing job lossesbecause of the closure of companies such as Choice Homes. The fact that Choice Homes has chosen to NOT restructure in Chapter 11 bankruptcy is a clear sign that they see the problems facing the housing industry to be long-term and difficult.
Couture said in a prepared statement that his firm is “faced with the escalating downturn in the housing market, the likelihood of a deep prolonged recession and very difficult credit markets.”
“This was not an easy decision, but faced with the unprecedented market conditions we have decided on this course of action,” he said. “It is our intent to satisfy our obligations to our subcontractors and suppliers and to work closely with our secured creditors to maximize the proceeds from the sale of the assets of Choice Homes.”
How many more companies will go bankrupt or simply close their doors because of the downturn in the economy? American workers will face more job losses because of these business closures and bankruptcies. The job losseswill in turn continue to fuel our foreclosure crisis and the inability of the housing sector to recover and unload the unsold homes glutting the market.