Pasquinelli/Portrait Homes spokesman Jonathan Dedmon told Big Builder Monday that the company is "continuing talks with lenders [and] continues to sell down inventory until the market improves."

In recent weeks, the company has been the subject of rumors that it would be shutting its doors. Dedmon responded to inquiries by stating the company was indeed halting construction but simultaneously talking with lenders to "right-size the business."

While some in the industry say the demise or downsizing of the company is probable--most likely in the harder-hit markets the company has projects, such as its home base of Illinois--bankruptcy documents have yet to be filed, and the company has not made any new announcements concerning the future of Pasquinelli/Portrait Homes.