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Choice Homes - DFW Home Builder

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2009-02-25

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stories: dallasnews.com

Update 2/26/09: Dallasnews.com has published an article on Choice Homes' suspension of operations. Per the article:

"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."

Original listing:

Numerous tips have come in that Dallas/Fort Worth and Houston home builder Choice Homes (choicehomes.com) "closed it's doors" yesterday. From one such emailed tip:

Choice Homes out of the DFW area closed it's doors yesterday, the 24th of February . . . they met at 9:00 am and told all employees they were shutting the doors.

Other tips have come in that confirmed that it was "closing immediately" and "toast" as of yesterday.

Choice Homes was a top 50 nationwide home builder in both 2006 and 2007 per builderonline.com having closed on nearly 3,000 homes in 2006 and 1,600 homes in 2007. Per the "about us" section of the company's website:

Our Story Began in 1987

Starting out with just one community in Texas; then expanding throughout the Dallas/Fort Worth and Houston areas, the Choice Homes' story has been written by our valued customers and the team that serves them. At Choice, we believe everyone deserves a chance to realize the dream of owning a new home that reflects their personal style.

More Than 39,000 Homes Strong and Counting!

Choice Homes was at one time "the largest builder in the Dallas/Ft. Worth market" and had previously survived substantial turmoil according to a 2005 article titled Reinvention by Choice. At the time, Choice Homes had some 400 employees and was "just-under-a-half-billion-dollar company."" We are uncertain how those figures have changed since.

Finally, we are unclear at this time what Choice's plans are going forward. If you can provide us with additional information regarding Cholce Homes, please comment below using our forums or email us!

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Comments:

DFWDeb at 08:58 2009-02-28 said:
Doors are closed - Banks still have not decided if they will give Choice the money to complete the homes under construction. Why would the banks want unfinished homes? Permalink
Nelson at 17:11 2009-02-28 said:
By "doors closed" do you mean all the employees have been laid off.

The banks first instinct seems to always be don't spend another dollar and sell the foreclosed properties on an "as is" basis.

There are still Buescher, Royce, Colonade, Twinmark etc. homes all over town and the banks still haven't learned that finishing the home will mitigate the losses. 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.