Twin Cities builder files for Chapter 11
Twin Cities homebuilder MW Johnson has filed for Chapter 11 bankruptcy protection, in the latest fallout of the housing market collapse. The Builders Association of the Twin Cities ranked the company as the 11th-largest home builder in 2007, based on gross revenues, which it estimated to be $41.4 million.

Twin Cities builder files for Chapter 11

Twin Cities homebuilder MW Johnson has filed for Chapter 11 bankruptcy protection, in the latest fallout of the housing market collapse.

Lakeville-based MW Johnson made the bankruptcy filing Friday in U.S. Bankruptcy Court in St. Paul. The company's Florida division, MW Johnson Construction of Florida, also filed for Chapter 11.

The Builders Association of the Twin Cities ranked the company as the 11th-largest home builder in 2007, based on gross revenues, which it estimated to be $41.4 million.

The company has nearly 1,000 unsold houses and lots in Minnesota, Wisconsin and Florida.

In a statement Monday reported in the Star Tribune, Bill Johnson, owner and president, said that the company has enacted cost-cutting measures in the past 18 months including reduced overhead and inventory, through auctioning houses with no minimum bid.

Among the list of creditors include siding provider Pyramid Enterprises Inc. of Lakeville, which is owed $1.2 million, attorney Richard Hocking of Lakeville, who is owed $600,000 for legal services. Lakeville-based businesses Bernco, which does millwork is owed $192,500 and cabinet-maker Cabinet Plus More Inc., which is claiming $173,900. Both its liabilities and its assets are valued at more than $50 million.