Village Homes of Colorado, a progressive builder based in Greenwood Village, Colo., has filed for Chapter 11 bankruptcy protection, according to the Rocky Mountain News.
The 24-year-old company reported $138 million in debt and $104 million in assets, saying it had sales of about $85 million through October. The company had revenue of $184.2 million last year and $219.4 million in 2006, court papers show.
It blamed the credit crisis and the housing market. Court papers show it planned to build about 220 to 225 homes this year, which is down from 410 homes last year.
"It's an industry-wide epidemic," says Matt Osborn, president of the Home Builders Association of Metro Denver. "We're not the only home builder in Chapter 11. We're facing the same factors and credit market tightening that is impacting the housing market here in Denver and across the country.
"Chapter 11 gives us the best opportunity to really recapitalize and restructure our balance sheet and prepare for the future."
Village Homes has been slashing the prices of its homes. One home in Granby, Colo. that was priced at $565,067 is now at $465,067. And a home in Parker, Colo. previously priced at $630,560 is now $499,000.
Village has been one of the most progressive builders in terms of implementing technologies in its new homes and using software to boost efficiency over the years.