Fort Worth home builder files for Chapter 11 bankruptcy after disputed land deal
Fort Worth homebuilder Village Homes filed for Chapter 11 bankruptcy Wednesday amid an legal dispute over the sale of 100 vacant lots and company branding, according to a company press release.
The move will allow the company to continue operations while it sorts out the legal case, the release said.
“This is not a decision we take lightly,” said Village Homes co-founder and president Michael Dike in the press release.
“We intend to come through this process intact and keep doing what we’ve done in Fort Worth for nearly 30 years: build timeless homes with integrity,” Dike said in the release.
Village Homes was in talks in 2024 to sell 100 vacant lots, the company name and related assets as part of a planned rebrand and retirement of one of the firm’s founding partners, according to the press release.
However, the deal fell through, and Village Homes filed a lawsuit in Tarrant County Court in March to formally cancel the contract.
According to Village Homes’ court filing, the buyer, Olerio Development, LLC, put down $300,000 as part of the first phase of the buying process, but backed out when its financing fell through.
Olerio disputed that assertion in court filings, alleging Village Homes defaulted on its contract and cancelled the deal unnecessarily.
The Dallas-based developer asked the court to award monetary damages and force Village Homes to hand over the 100 lots. Olerio went to court in May to prevent Village from selling the lots, according to court documents.
Village tried to get a court to overturn the so-called lis pendens suit, but a Tarrant County judge denied the company’s request after an Aug. 13 hearing, according to court documents.
“We entered this deal in good faith,” Dike said in the press release, adding that his focus is on minimizing disruption of the business.
Dike emphasized the bankruptcy filing won’t prevent the company from making loan payments, paying its vendors and employees.
The Chapter 11 process will allow the company to restructure in a way that ensures creditors get paid, and that the company can get back to building homes, Dike said in the press release.
Representatives for Olerio declined to comment citing the litigation when reached by the Star-Telegram.
Village Homes has been in operation in Fort Worth since 1996. The company has built over 1,500 homes, including townhomes in the Linwood neighborhood and single family homes in Walsh.
The company is also developing luxury townhomes in the Stonegate neighborhood just north of Tanglewood and west of TCU.
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