Tuesday, October 23, 2007

Private Homebuilder to File Bankruptcy

Another one bites the dust.

"Neumann Homes, one of Chicago's largest homebuilders, announced on Monday that it intends to file for bankruptcy.

The company said in a press release at 5 p.m. that it had been "unable to procure adequate funding" to operate its business. Marketing director Jean Neumann said that despite other published reports, the bankruptcy had not been filed, though "it will be done shortly."

The company, ranked among the top 10 in Chicago, also builds in Wisconsin and Colorado. Company CEO Kenneth P. Neumann said in the statement that "significant downturn in the Detroit, Chicago and Denver housing markets resulted in this situation. ... Even after the significant help we have received from our lenders this year, the company can no longer weather this storm."

Neumann Homes Bankruptcy


Anonymous said...

What has been left out of these new articles is WHY Neumann is the first to fall. They have been on thier heels for a while due to thier cruddy customer service, poor products, and heavy handed relations with their employees and subs.

When a company is is operated in this fashion, it is bound to fail in a matter of time...the downturn just weeded them out first...just as it should be. This frees up the field for quality homebuilders. In the end, it is better for the consumer. No one should feel any sorrow for Neumann Homes, they failed all on their own....

Eric J. Fox said...

Neumann does not build in my area so I will take your word for it.

Reader said...

I can't say that i totally agree