The president of Royce Builders, one of Houston's top home building firms, said today the company has laid off a substantial number of employees and that operations are winding down.
The company's credit lines have been cut as its lenders limit their exposure to real estate, said John Speer, president of the 24-year-old Houston-based homebuilder.
"When we got squeezed on the ability to start houses it affected our cash flow," he said.
The company, which earlier this year had about 220 employees, now has about 60. There were some layoffs earlier this year.
Speer said Royce is working with its lenders to complete homes that already have been started. It is also negotiating with vendors who have liens against the company.
Royce has between 60 and 80 homes that are under construction and will be completed, Speer said. Another 70 or 80 that have been contracted but not yet started are unlikely to be built.
"We'll get them their earnest money back," Speer said.
The builder has not filed for bankruptcy, but it was unclear how the company would emerge from its current situation.
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