FAQ  |  Search  |  Memberlist  |  Usergroups   |  Register  |  Profile  |  Log in to check your private messages  |  Log in 

 Sotherby Homes-Dallas/Fort Worth View next topic
View previous topic



Post new topicThis topic is locked: you cannot edit posts or make replies.
Author Message
Steamer
Dud?


Joined: 08 Mar 2008
Posts: 14

Sotherby Homes-Dallas/Fort Worth
PostPosted: Wed Mar 26, 2008 10:44 am Reply with quoteBack to top

Sotherby Homes, based in Plano, TX may be next. They are short- and, in some cases, no-paying suppliers and contractors and last week reduced staff by over 50%. Seems they own about 1200 high priced lot in the market on top of approximately 200 completed homes in inventory and therefore have virtually no cash flow. The ironic thing is they claim 2007 was a record revenue year for them while most every other builder in the market was down.

Sotherby Homes is owned and operated by the Shaddock family but all may not be well as Peter Shaddock, Jr, has been noticibly absent of late. His sister, Elizabeth, is most visible to field staff and dad, Peter, Sr, is juggling payables and fighting off creditors. Many key contractors have already walked away and many new homeowners are eceiving lien notices in their mailboxes. In spite of the redundant management layers at the project level, insiders indicate nobody has been watching the business for some time now. It appears the company may be positioning for the worst since new developments are opening under the "Shaddock Homes" banner instead of the Sotherby name.
View user's profileSend private message
girl with the scoop
Dud?


Joined: 29 Mar 2008
Posts: 3

Re: Sotherby Homes-Dallas/Fort Worth
PostPosted: Sat Mar 29, 2008 7:22 pm Reply with quoteBack to top

Highly doubtful that Peter Shaddock Sr. would let that happen in my opinion. He has been wildly successful and has a great name in the industry. I agree that the rumor is that he is taking the reigns back, and that is not a bad thing for the time being. Watch and wait, Sotherby will bounce back strong again. When the Shaddock name is attached to any home or development it has always meant quality, and the general public and Realtors know this.
View user's profileSend private message
chick
Dud?


Joined: 01 Apr 2008
Posts: 1

Sotherby Homes
PostPosted: Tue Apr 01, 2008 9:31 pm Reply with quoteBack to top

Sotherby Homes is here to stay. It's true they experience a short cash crunch but they are over the hump, vendors are being paid, houses are moving and closing. The Shaddock Family is commited to the company and Sotherby will continue to be a player in the market.

to correct a previous post, 2007 was the best SALES year ever according to the bill board on the Tollway, not the best PROFIT year.
View user's profileSend private message
The Wizard
Cherry Bomb


Joined: 22 Feb 2008
Posts: 114

Re: Sotherby Homes-Dallas/Fort Worth
PostPosted: Wed Apr 02, 2008 1:29 am Reply with quoteBack to top

Steamer, can you tell me a little about Shaddock and Sotherby.

Appears like father and son have two home building companies, are they run separately like Mercedes and Beuscher Homes?

Do they just build in Texas?

If one of them is in financial trouble which it sounds like, will the other company suffer too, or are they separate corporations?

Any info will help.

_________________
The Wizard
View user's profileSend private message
STONE PRO
Dud?


Joined: 02 Apr 2008
Posts: 5

Sotherby is still ok
PostPosted: Wed Apr 02, 2008 5:04 am Reply with quoteBack to top

Yes alot has happened lately, its not just sotherby every builder is having problems. Most vendors are caught up, the rest will be soon. Peter Jr. and Beth just had a babies they didnt disapear. They had alot of homes on the ground and are moving them quick. Ive even seen alot of new starts coming in may. Not many vendors have left if any that i know of. They had to reduce staff, they are doing what needs to be done. I personally know the Shaddock family and believe me they are deeply involved in their company. I know I sound like a spokesman, but its good info. Give it a couple of months you will see. I built my company off them if they went under I would go with them. But im not worried alot of what you hear is rumors Smile
View user's profileSend private messageVisit poster's websiteYahoo Messenger
Steamer
Dud?


Joined: 08 Mar 2008
Posts: 14

Sotherby
PostPosted: Wed Apr 02, 2008 1:15 pm Reply with quoteBack to top

A local banking source indicates Sotherby is looking for additional lines since being cut off by two primary lenders. They are also seeking to place lot inventory with land banker to raise cash. I have heard first-hand from vendors who have spoken directly with Peter Sr who has "guaranteed" payment to occur at some point. However, I'm told the amounts owed to all creditors is a very big number and likely dependent on additional lines. Sotherby has sold down some inventory in DFW, their sole market, the past few weeks but the cash flow generated may not be enough to satisfy existing liens and debt service.

I am not specifically aware of structure or who is currently in charge of operations. I am told that Peter Sr. is now watching the money and will likely have to lead the business out of this crisis.
View user's profileSend private message
STONE PRO
Dud?


Joined: 02 Apr 2008
Posts: 5

RE:
PostPosted: Wed Apr 02, 2008 9:55 pm Reply with quoteBack to top

PETER SR. RUNS SHADDOCK. BETH AND PETER JR. ARE RUNNING SOTHERBY. THEY ARE VERY MUCH ( AND ALWAYS HAVE BEEN) INVOLVED IN DAY TO DAY OPERATIONS. THEY HAVE BUILT THIS COMPANY TO WHAT IT IS TODAY AND WILL CONTINUE SUCCESFULLY. YOU WILL NOT FIND A BETTER COMPANY TO WORK FOR. YES YOUR SOURCE WAS RIGHT THEY ARE MOVING ALOT OF HOUSES OF LATE THIS WILL BE OVER SOON I PROMISE. AND BACK TO THE LAY OFFS OTHER BUILDERS STARTED LETTING PEOPLE GO A YEAR AGO. D.R. HORTON CUT 2/3S OF THEIR STAFF. AND WHEN YOU HAVE A FAMILY BUSINESS YOU DONT WANT TO LET YOUR EMPLOYEES GO UNTIL YOU ABSOLUTELY HAVE TO. IVE DONE THE SAME THING EMPLOYEES ARE NOT JUST EMPLOYEES TO ME. THEY ARE THEY SAME WAY. CHRIS GAREK [url]WWW.STONEPROINC.COM [/url]
View user's profileSend private messageVisit poster's websiteYahoo Messenger
Bling
Dud?


Joined: 03 Apr 2008
Posts: 2
Location: Frisco

Warning!!!!!
PostPosted: Thu Apr 03, 2008 3:40 pm Reply with quoteBack to top

If Sotherby is here to stay, then why can't they pay their vendors and why are they pulling out of over half of their communities? Why is over half of their staff been let go? Why are the ones that were "hand picked" choosing to leave because they won't work for a company that gives them no sense of security and constantly gives misleading information to everyone? I have heard that there is nothing but empty promises made and that Peter Junior does nothing but talk in circles and not really answer anyones questions. Sounds like a bunch of smoke and mirrors to me. Watch out if you own a Sotherby in one of the neighborhoods that they are pulling out of...your property value is going to be greatly affected! And if you are an employee...watch your back! I have also heard that there are a number of lawsuits going on that could force them into bankruptcy.
View user's profileSend private message
GC
Dud?


Joined: 03 Apr 2008
Posts: 8

Re: Sotherby
PostPosted: Thu Apr 03, 2008 8:37 pm Reply with quoteBack to top

Steamer wrote:
A local banking source indicates Sotherby is looking for additional lines since being cut off by two primary lenders.


Show me a builder that isn't looking for additional lines, especially with the increasing number of lenders pulling out of Residential Lending altogether? From what I understand, many DFW local and even national builders have lost credit lines due to major players (Key, Washington Mutual, etc) pulling out of the residential lending business - at least for the time being. Smart money men/builders are going to be continually reassessing their current providers and continually looking to add to/change out certain lines of credit. That's just good business.

Steamer wrote:
They are also seeking to place lot inventory with land banker to raise cash.
Again, I do not think this is something that is indigenous to Sotherby. Many builders are doing this as it is part of smart land management - so much so, that I think even Big Builder made a mention of this type of thing in their 2008 forecast??
View user's profileSend private message
truthful
Dud?


Joined: 11 Apr 2008
Posts: 1
Location: Frisco

You have to except the truth
PostPosted: Fri Apr 11, 2008 7:26 pm Reply with quoteBack to top

First of all everthing Bling and Steamer have said is true. Let me start by saying yes, Sotherby was known for being a quality builder and hands down far superior to any of its competitors, HANDS DOWN. It is not an issue of sales, Sotherby has always made its sales. WAY TO GO SALE TEAM!!!! The issue is cash flow. The basic principle of any business, is that when you make money you re-invest into the business. You do not; 1) use that money to build a 2.1 million dollar second home; 2) you do not spend over a million dollars on a high price software that has not be implimented yet; 3) you do not continue to employ a sub-par vendor who renders sub-par service just because they fund quarterly fishing trips and as a result now, face law suits from that vendor because of nonpayment. Surely you get the picture now, the list goes on and on. At the end of the day, a lot of poor decisions were made at the executive level and as a result has cost a lot of hardworking individuals their jobs. Sad
View user's profileSend private message
Display posts from previous:      
Post new topicThis topic is locked: you cannot edit posts or make replies.


 Jump to:   


Merge topics 

View next topic
View previous topic
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum




Powered by phpBB 2.0.22-2 (Debian) © 2001, 2002 phpBB Group :: FI Theme :: All times are GMT