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Adam Stearns Homes - High-end builder

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2008-05-05

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stories: tennessean.com

Custom, high-end home builder Adam Sterns Homes (site down: adamsternhomes.com) has filed for Chapter 7 bankruptcy protection according to this article from the Tennessean. Per the article:

"I think it was more a realization that we had been … rearranging the deck chairs on the Titanic," said Joe Rusnak, Adam Stern's lawyer. "Rather than increasing the risk to the subcontractors, and further increasing the amount owed to subcontractors, (Adam Stern) called each and every one of them, and said don't deliver lumber, don't do any more landscaping. I'm pulling the plug."

The article notes that Adam Sterns Homes was a competitor with previously imploded Corinthian Homes (imploded 2008-02-16).

With only about $4 mm worth of properties incomplete and only about $3 mm in liabilities, we consider Adam Sterns Homes a "tiny" implosion. However, having been in business for some sixteen years, we still find it noteworthy.

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Important: This company is on our list of builder operations that have "imploded" (see also ailing lenders). This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid declines in enterprise value; or abnormal "bail-out" by corporate parents or peers in order to continue to operate. The builders may be residential or commercial.