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Irving's Choice Homes is latest homebuilder to suspend operations
One of North Texas' largest homebuilders is suspending operations because of the tight credit markets. Choice Homes, which has been in business for 21 years, is the latest in a string of local builders forced to shut down because of the lack of lending. The Irving-based high production builder constructed more than 580 houses in the Dallas-Fort Worth area last year. "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. Choice Homes on Tuesday informed its employees and vendors of the company's decision. Couture said in a written 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." The company said it will refund deposits for all customers who have contracted to purchase homes and that it has paid all of its contractors. Choice is the largest North Texas builder to decide to halt operations because of the current financial malaise. The company has built about 39,000 homes since it started in business. The company builds in North Texas and the Houston area. In the D-FW area, its houses start at less than $150,000. Homebuilders and real estate developers have been cut off from funding for new projects and have laid off hundreds of workers this year. In January, Arlington-based Wall Homes filed for bankruptcy after it couldn't secure funding. Wall Homes built about 350 houses in the D-FW area last year. And in December, Plano-based Sotherby Homes – which builds about 300 houses a year – also shut down, leaving some customers in the lurch. The D-FW area saw a drop of more than 50 percent in single-family home starts from 2006 to 2008. Some forecasts call for an additional 15 to 20 percent drop in building here in 2009. "It's unbelievable what is going on out there in the industry right now," said Dallas housing analyst Ted Wilson with Residential Strategies. "If you can't get financing, it's very difficult to go forward. "It's going to be hard on this market to lose builders like Choice Homes." http://www.dallasnews.com/sharedcontent/dws/bus/stories/ |
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