June 4, 2009 - The Kirk Corporation, Bolingbrook IL

Homebuilder The Kirk Corporation files for bankruptcy

The Kirk Corporation, a home builder in Bolingbrook and throughout the Chicago area, recently announced that it has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Illinois.

Day-to-day operations of Kirk Homes will not be affected by the filing, said John Carroll, president and CEO of The Kirk Corporation.

Founded in 1978, The Kirk Corporation, one of the only major builders in the U.S. which is entirely owned by its employees, has built more than 50 neighborhoods throughout Chicagoland. Kirk Homes is building Herrington Estates in Bolingbrook, with single-family homes starting in the $310,000s. The company also is building communities in Hoffman Estates, Lakemoor and Woodstock.

"We are confident that the reorganization process gives us more opportunity to work with our lenders JP Morgan Chase, Bank of America and others, and to secure additional financing, which will allow us to continue building high-quality homes for Chicago area homeowners for many years to come," Carroll said. "We enter this process with strong fundamentals, robust sales at many of our communities and the continued commitment of our employee owners to work through this temporary situation and emerge as an even stronger organization."

While in the reorganization process the company plans to continue to provide warranty service and otherwise operate in the ordinary course of business and to sell homes free and clear of all liens.

Carroll said that Kirk Homes' standing inventory is significantly less than the industry average, and that while under the protection provided by the filing, the company will complete homes currently under construction, begin new construction on recently sold homes and continue new home sales and marketing. Construction is expected to start on any sold homes that have not already begun construction within the first 60 days of reorganization.

Kirk Homes also will seek to sell its nonresidential properties at a variety of sites in Northern Illinois.

Original Story - Bolingbrook Sun