The Home Builder Implode-O-Meter News Pick-ups: Imploded: Sotherby Homes

Sotherby Homes - Texas high-end home builder

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2009-06-29

A forum post> served as notice alongside the creation of the website sotherbyupdate.com to announce that Sotherby Homes has "ceased operations:"

Sotherby Homes has ceased operations. This unfortunate event is the result of our lenders suddenly and unexpectedly curtailing our available credit due to the national banking crisis. We sincerely regret the fact that this situation prevented our company from completing some homes and has resulted in inconvenience for our valued customers, realtors and vendors.

The only business of Sotherby Homes was new home construction and it is in no way related to any other company using the Shaddock name or other enterprises owned by members of the extended Shaddock family. The unrelated Shaddock businesses continue to operate successfully, as they have for many years, in the building, development, title and mortgage-related industries. The extended Shaddock family members are not and have never been involved with Sotherby Homes.

Sotherby has established a single e-mail address: sotherbyupdate@gmail.com for any issues not covered on this website. Please note that we do not have a staff to handle these inquiries so there may be a delay in receiving a response. Please check this website first to make sure your question has not been addressed here.

The "update" goes on to note that Sotherby no longer has any corporate staff or offices and cannot take phone calls. At sotherby.com a number, 972.378.4129, is listed as a point of contact; however, an automated response at that number informs you to call 214.535.7110, which goes straight to a voice mailbox.

Original Post to Ailing/Watch on 2008-12-22: Word has emerged that Plano-baseed "high-end" homebuilder Sotherby Homes (website: sotherby.com — notes "technical difficulties") has "suspended some operations." An article on the suspension notes:

Plano-based Sotherby Homes builds more than 300 houses a year that sell for between $300,000 and $500,000.

This week, the company's Internet market sites weren't working and some of its sales offices were idled.

Sotherby has been in business for 14 years and builds in multiple locations in Collin and Denton counties.

A statement issued by the company indicates that the suspension was caused by the national pullback in lending. Per the company:

National lenders have severely curtailed financing to builders such as Sotherby due to the recent economic crisis. . . .

The government bailout has not helped the situation . . . We are presently working with our lenders and customers to try to resolve the situation.

If you have more information on Sotherby's suspension of operations, please comment below or email us!

Comments:

Justin at 13:49 2008-12-24 said:

Another article on Sotherby

http://dallas.bizjournals.com/dallas/stories/2008/12/22/daily13.html

Homebuilder Sotherby Homes, which is listed as part of North Texas-based Shaddock Builders & Developers Inc., sent an automated e-mail to customers that inquired about services this week that the company is suspending its warranty program until after the holidays.
Plano-based Sotherby Homes could not be reached Tuesday, but on an answering machine said the company would be closed until early January.
In an automated e-mail, the company said, âIt is with a heavy heart that we bring you this information. Due to the hard economic times Sotherby Homes is suspending its warranty program until after the holidays.â

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jamf92 at 11:19 2009-01-06 said:

Unfortunate for the employees but Peter Sr. had it coming for a long time. Could not have happened to a better person :D

I say let the Implode hit him hard. About time he had a reality check. Say what you want on their homes but Peter Sr. was and is a top of the line jerk. It's called "Karma" what goes around comes around. Good to see it is real. Permalink

jwoody at 12:42 2009-01-06 said:

I think you are referring to Peter Jr. I have never heard anything but very positive comments about Sr. Permalink

scaredowner at 14:14 2009-01-06 said:

There are home buyers that are left to wonder where they stand on their homes. I am one of those that is waiting to see what my options are with being able to have my home that I have already given lots of money to have built. Permalink

jamf92 at 21:16 2009-01-06 said:

I stand corrected, it was Jr. and not Sr. that I had the unfortunate opportunity to deal with. Permalink

peebeebaynut at 09:57 2009-01-20 said:

Homeowners burdened by homebuilder's money woes ... Michael Garver moved into his new Sotherby home two months ago. Within the past two weeks, letters started arriving in the mail from subcontractors threatening to put liens on his house and demanding thousands of dollars. ... "It's certainly frustrating to have people coming after you for things that you â in your mind â have already paid for," Garver said.

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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.