Developer and homebuilder T.H. Properties has temporarily suspended its operations and is exploring options to restructure its business operations, according to its Web site and a message left at its corporate offices.
The move went into effect Tuesday. The Harleysville, Pa., company said the “recession and the collapse of the housing market have had a negative impact on the company’s operations” and that it is trying to restructure the company and its “obligations” so it can proceed with constructing and developing residential properties throughout the region.
The company was formed in 1992 and called THP for The Hendricks Properties. The company was formed by a partnership between brothers Tim and Todd Hendricks, whose father was a custom builder. The company developed residential communities mostly in Montgomery County but also had projects in New Jersey and the Lehigh Valley and focused for the most part on the first-time homebuyer.
Another regional builder to be hit by the recession and bust of the housing bubble is the Elliott Building Group of Langhorne, Pa. In June 2007, Elliott filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey, saying it needs a “breathing spell from aggressive creditor action.” It was later liquidated and its communities still under development were auctioned off.
The bankruptcy filing by Elliott was the first of what is expected to be an eventual surge in bankruptcies by regional builders, who rapidly grew during the heady days of the real estate boom but got caught with the credit crisis and recession where home sales dramatically fell.
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