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Sotherby/Shaddock Homes in Trouble
Friday, 02 January 2009

High-end Plano homebuilder suspends some operations
Plano-based Sotherby Homes builds more than 300 houses a year that sell for between $300,000 and $500,000. This week, the company's Internet marketing sites weren't working, and some of its sales offices were idled. Sotherby has been in business for 14 years and builds in Collin and Denton counties. Officials did not return phone calls or e-mails Monday. But the builder released a statement that said "national lenders have severely curtailed financing to builders such as Sotherby due to the recent economic crisis."...Almost two dozen North Texas homebuilders have gone out of business during the last two years because of declining sales and reduced construction.

High-end Plano homebuilder suspends some operations

By STEVE BROWN / The Dallas Morning News
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Read and Post Your Comments
One of the Dallas area's best-known custom homebuilders has suspended some operations.

Plano-based Sotherby Homes builds more than 300 houses a year that sell for between $300,000 and $500,000.

This week, the company's Internet marketing sites weren't working, and some of its sales offices were idled.

Sotherby has been in business for 14 years and builds in Collin and Denton counties.

Officials did not return phone calls or e-mails Monday. But the builder released a statement that said "national lenders have severely curtailed financing to builders such as Sotherby due to the recent economic crisis."

"The government bailout has not helped the situation," the company said. "We are presently working with our lenders and customers to try to resolve the situation."

Sotherby Homes is an affiliate of Plano-based Shaddock Cos., a land developer and builder that started in the 1960s.

Almost two dozen North Texas homebuilders have gone out of business during the last two years because of declining sales and reduced construction. Total housing starts in the Dallas-Fort Worth area this year were less than half what they were in 2006.
Read and Post Your Comments

 Comments: 24
madbuyer 8 hours ago wrote:

Yes Devolper you just don't get it. I was lead to believe over and over again when I questioned our sales guy if Sotherby was financially stable enough or should I be concerned since we were spending so much money with them. I was told that they had taken the necessary steps to stay a float through these rough times. Well guess what devolper, our home is now owned by a bank and we are out $20,000. Do you think we have received a call from Sotherby or a letter. Nope, not a word. So I don't care what they have done in the past, because while they are celebrating and doing what the Shaddocks do best, we now will have to save for years before we can buy another house. Can you say the same for the Shaddocks?

kingfisherandcatchers mitt08 1 week ago wrote:

Well Developer, poor fella, he just doesn't get it huh? Do me a favor peter, er Developer, why don't you contact some of the people who were laid off days before Thanksgiving while the Shaddocks were in Mexico?
Or call the homeowners who's houses have been hijacked by liens imposed by vendors who are owed 100k to 300k on work they COMPLETED but have not been paid by Sotherby?
Son, the economy may have landed a couple of blows, but the Shaddocks walked into the ring with self inflicted wounds. Using company funds to remodel second homes, buy cars, and God only know what else. Alot of us bought into this company, poured blood sweat and tears into helping the Shaddocks make all of those millions you spoke of only for them to piss it down the commode. Son I wish it was the economy, it was human nature instead and we are all paying a hefty price. When you go out hunting with the Shaddocks this weekend, ask them, was it worth it? And if you could go back and do this thing over again, would you do things another way? Since they just filed bankruptcy under Chapter 14, my guess is no, but you can ask them anyway. And bring back some deer jerky while your at it. These bologna sandwiches are getting pretty old pretty quick.

Developer 1 week ago wrote:

Maybe,I don't get it. This local company builds thousands of houses over 15 years, earns a national reputation for building quality, pays billions of dollars to subcontractors and distributes hundreds of millions of dollars in salary and bonuses to employees. Then this comapany in a horrible recession has financial problems. What do they get from the very peole that they generously supported over all these years? All of these negative comments and personal attacks. Excuse me, but this just doesn't seem fair. For me, I am thankful for my relationship with Sotherby and want to try to help them in any way possible. It just seems the right thing to do.

kingfisherandcatchers mitt08 1 week ago wrote:

oldsguys, sir you have just scratched the surface of this puppy. this will go down as the enron of homebuilding when it's all said and done. I almost lost my lunch when I read that Sotherby "suspended some operations".yeah right. after they let us all go, they kept two gals in accounting,jr's little assistant, and a couple of others to "close the books" and transfer everything over to the new "company name" in other words; if you,a) have a house still under construction, or you just closed on one of those suckers b)a vendor who is still owed hundreds of thousands of dollars, good luck fellas! The Shaddocks have left the building. They are filing bankruptcy on Sotherby. I hope you all find good attorneys, I have. Go to implode explode.com, to read more.

Mister Kleen 1 week ago wrote:

Guess they'll have to wait until lenders resume extending bad credit to resume operations. Is this supposed to make a normal person feel sorry?

Sales 1 week ago wrote:

To dazzling urbanite; Prosper isn't that far. The DNTollway now runs right into Prosper. I live in Dallas and sell homes in Prosper. Door to door I can be at the office in 35 minutes. With the new Jack Nicklaus golf course and retail to go up in the next few years, Prosper is going to be the place to be.

bubblehead 1 week ago wrote:

Why are they still building apartments, condos and houses, where do they expect people to get the money to pay for all these new homes. Not to mention all new the shopping places they are building in Allen.

Owl 1 week ago wrote:

Oh no... Where is the Frou to live?

subcontractor 1 week ago wrote:

I am concerned for all those vendors that did good work for Sotherby and were asked to support; "be a team player", and "hang in there with them"....while all along being lead to the slaughter house...what do we do now with the monies owed? The ole Bankruptcy card will sure demolish all that is owed to the vendors, and some will not survive. Merry Christmas Sotherby!!! I am sure Peter Jr. will still own his ski home in Crested Butte, large home in Dallas he remodeled for almost free with vendor money, and that Porche he still drives, with much more to list....hopefully a true correction will come....When people get greedy they become crooked..business deals are not clear, lines are crossed, and lies are told. My hope Peter Jr., is for you to some day understand the true meaning of Christmas, one that some of your family members know well. It is with this your life can trully change. For what we have in possessions does not last.

dazzling urbanite 1 week ago wrote:

Plano is in decline and Prosper is really too far out - Frisco is now Frisclosure. What to do?

YouRSTRuLY 1 week ago wrote:

For those of you who have negative things to say about the Shaddock family and their companies, you have no room to talk. These people are the MOST family oriented, kind hearted people you will ever meet...if you're that lucky. We ALL know that the economy has demolished so much here recently. Do you really think that your put-downs are helping the situation??? Why can't you just give positive feedback and prayers for these people. Remember, they have families to support as well!!!

Bichongirl 1 week ago wrote:

What a shame, Sotherby is an excellent builder and highly regarded by their homeowners and real estate community. Lets hope they can re-organize...maybe a Builder Bail-out!

THE BIG RAGOO 1 week ago wrote:

Just wait ...we are going to see lots of home builders and lots of car dealers go out of business. Most people can't afford these luxuries or want them anymore.

Developer 1 week ago wrote:

This story is incorrect. Sotherby is in no way an affiliate of the land development company known a Shaddock Development. Sotherby has never develped any land and is simply a builder. They are a separate company from any other Shaddock related entity with no common ownership.

zaitek 1 week ago wrote:

Stop building these new homes. Consumers can't get them financed.

A Voice 1 week ago wrote:

Peter Shaddock Jr, the owner that ran a good company into the ground!

and so it goes 1 week ago wrote:

A Voice...Peter who??

A Voice 1 week ago wrote:

Nice job Peter!!

YellowFever 1 week ago wrote:

Who cares about these builders? I sure don't.

oldsguy 1 week ago wrote:

wonder if they ever got caught for their own title company signing off on houses that had liens against them that Sotherby had not paid...that was early 2008's issue.Not sure unless you owned one of their homes you were aware of that issue...simply heresay of course. Undestand by radio news accts today their warrenty services are shut down until Jan 9th (maybe its just vacation time?????) just like at Chrysler. Hope you have no major issues through the holidays

Danny V 1 week ago wrote:

I hope GRAND HOMES goes down as well. These folks,ie: STEPHEN BROOKS of HIGHLAND PARK do not pay for the work they hire subcontractors to do. That is correct. Subcontractors which have built and worked on their homes go unpaid to this day, leaving unsuspected homebuyers with angry subcontractors knocking on the door.

2BFRANK 1 week ago wrote:

If the dollar amounts being reported are factual and investigated and if companies are suspending work - doesnt the pay check dimish when work dimishes

bubblemeister 1 week ago wrote:

But, but, I thought house prices in Dallas went up!

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