Fulton Homes, a BUILDER 100 firm, filed for Chapter 11 bankruptcy yesterday.
Court documents indicate that the private Tempe, Ariz., builder owes between $100 million and $500 million to between 100 and 199 creditors. A meeting of those creditors has been scheduled for March 3. Bank of America is among them, according to a story in the Arizona Republic.
Fulton closed 636 homes for $226 million in revenue in 2007, but like many builders, has suffered in the housing downturn. Arizona has remained near the top of the national list for foreclosures, and Phoenix recently recorded an annual home price decline of more than 30%, according to Case-Shiller data released yesterday.
Fulton had attempted to respond to the downturn by offering remodeling services, but yesterday’s Chapter 11 filing suggests that strategy was not profitable enough to compensate for the current housing recession.
Alison Rice is senior editor, online, at BUILDER magazine.
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