January 19, 2009 - Wall Homes, Arlington TX

Arlington-based Wall Homes files for bankruptcy

Recently hosted an episode of TV's Extreme Makeover: Home Edition, featuring a house built in a week for a needy family.

Extreme Makeover: Home Edition

The Augustin family of Keller, Texas, are the deserving recipients of a brand new home built for them at no cost by Arlington home builder Steve Wall from Wall Homes Inc. and ABC’s Extreme Makeover team of hundreds of volunteers in just seven days. The new Augustin home replaces an irreparably flood-damaged dwelling the family was forced to leave last year. Visit Wall Website For The Augustin Family Story

The builder of a north Fort Worth house for ABC television’s Extreme Makeover: Home Edition filed for Chapter 11 bankruptcy protection Saturday, another apparent victim of the housing industry crisis.

Chief Executive Steve Wall, founder four years ago of what had been a fast-growing company, asserted that the home builder will complete houses under construction and that the filing will help it become leaner.

"This will then position Wall Homes to compete more effectively as we pull out of the housing market downturn," Wall said in a statement.

The Arlington-based company is limited in how much it can say as it works with its vendors, said Erin Kolp, a spokeswoman for the privately held enterprise.

It is following the lead of such competitors as Sheridan Homes, Buescher Homes, Goff Homes and Steelman Homes, which filed for bankruptcy protection in 2008.

The filing falls just a month after Wall Homes helped complete a home for Amber and Peter Augustin of far north Fort Worth, who had been selected by Extreme Makeover. Their house off Keller Hicks Road in unincorporated Tarrant County had been devastated by a June 2007 flood, which members of their church brought to the attention of the prime-time TV show.

Builders across the country have been hurt by softening home sales and a tightening credit market. New home starts are down significantly as prospective buyers wait out the recession. Builders also face competition from foreclosed and existing homes that have flooded the market.

As Wall Homes reorganizes, it will actively sell homes, the statement said.

"With the continued support from its lenders, Wall Homes also intends to continue the construction of homes already in progress and to sell those homes as scheduled," the statement said.

"We appreciate the support we have received from our lenders in the midst of such a tight credit market," Wall said. "With this support, we believe we have the opportunity to leverage our market position and the strength of our brand, both key to a productive future."

Wall, formerly chief executive at Arlington-based Choice Homes, launched the company in spring 2005 with the backing of Warburg Pincus, a global equities firm, which had helped create Ryland Homes and Lennar. The firm initially provided $50 million.

Earlier in 2007, Wall nearly doubled in size by acquiring the North Texas assets of Newmark Homes, expanding the company’s presence in the region from 28 neighborhoods to 50.

Wall Homes operates in Austin, Dallas, Fort Worth, Houston and San Antonio. The houses are generally in the $100,000 to $200,000 range, and customers can make many adjustments to the floor plan as they choose.

In August, Wall announced that his company would start building more $90,000 homes by the end of 2008 to capture more first-time buyers.

Original Story - Star - Telegram