Current news for this company:
Barratt American - private home builder
Update 2009-08-08: According to the San Diego Daily Transcript Barratt has changed their bankruptcy filing from Chapter 11 to 7:
Update 2008-12-24: Barratt has filed Chapter 11 as of December 24. An article on the filing notes:
The San Diego Daily has reported that Barratt American's CEO is anticipating entering Chapter 11 bankruptcy protection by the end of the year. Per the article:
Should anyone stumble on Barratt's official bankruptcy filing, please let us know!
Original Ailing listing - 2008-05-04
This builder is based in Carlsbad, CA, and has run out of money, as the story linked above details:
The builder is searching overseas and amongst non-traditional sources to find financing. However, they may find even those sources now hesitant to lend, as most of the Western countries one would borrow from (especially the UK) are now embarking on their own housing downturns, and no hedge fund wants to be the "greater fool".
The article remarked that Barratt built & sold about 500 homes a year at peak, though when the downturn hit in 2007, it only sold 125. One can see why that would really leave them in a lurch. Assuming 375 homes in inventory at $300k a pop, that is $112 million of expected revenue that did not come in.
Gravity works at 22:37 2008-09-18 said:CEO says only ~30 homes in inventory. Math matters, especially when you're multiplying a number by ~$300k. Read the whole article, there's enough doom and gloom in this industry without any exaggeration. Permalink
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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.