Current news for this company:
Dunmore Homes, Inc. - Residential
More on the Dunmore Homes family-ties debacle, from the NY Times.Update 2008-02-29:
From Sacbee.com comes an update on Dunmore Homes bankruptcy/liquidation:
Sacremento-based Dunmore Homes, Inc., a multi-million dollar family-run home builder originally established in 1954, was sold for a mere $500 to Comstock Mortgage senior loan officer Michael Kane. A month after the completion of the sale on September 10, 2007, Dunmore Homes under Kane's ownership filed for Chapter 11 bankruptcy protection (Nov. 7). It's all a bit confusing, so please reread (And also refer to the helpful timeline below).
The Journal goes on to report that one of the major creditors of Dunmore Homes, RBC Centura, filed suit on November 7th, which was subsequent to the sale but prior to the bankruptcy filing. RBC Centura alleged "that the sale of all the assets for a mere $500 wasn't adequate and was done to 'hinder, delay and defraud the creditors,' including RBC. The bank also alleges that Dunmore Homes and Kane 'lack sufficient expertise and funds to carry on the business.'"
Having reported revenues of approximately a quarter billion dollars in 2004, Dunmore Homes had assets totaling approximately $280 million at the time of the sale to Kane. Dunmore owes a "combined total of $196 million on Dunmore Homes' 26 new-home communities."
The Sacremento Business Journal article included the following helpful timeline of the events at Dunmore Homes:
We are unsure at this time whether Dunmore Homes will emerge from bankruptcy to build again. If you have any further information, please let us know.
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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.