Tuesday, August 26, 2008

Detroit housing woes cited in Neumann Homes bankruptcy filing

WARRENVILLE, Ill. -- Neumann Homes Inc., a large homebuilder in Detroit, Chicago, Denver and Wisconsin, is filing for Chapter 11 bankruptcy protection because of the slump in housing markets.

The company said late Monday that it had been unable to secure adequate funding to operate its business and had closed its sales, production and customer service offices. It said it has laid off most of its employees, but did not give a number.

Chief Executive Kenneth Neumann blamed the situation on a "significant downturn" in housing markets in Detroit, Chicago and Denver.

"Even after the significant help we have received from our lenders this year, the company can no longer weather this storm," he said in a statement.

Neumann Homes expanded to the Detroit area in 2005 by buying Tadian Homes, an acquisition that made it the 35th-largest U.S.

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