CHICAGO (WBBM) -- Neumann Homes - one of the Chicago area's biggest homebuilders - is set to file for Chapter 11 bankruptcy protection company officials said Monday evening.
The padlocks went on sales offices today.
Neumann Homes CEO Kenneth Neumann released a statement just before 5 p.m. that says, in part, that Neumann has "been unable to procure adequate funding to operate their business."
Neumann's statement says - quote - "The significant downturn in the Detroit, Chicago and Denver housing markets resulted in this situation."
The statement from Neumann says it laid off "the majority of its employees and closed all of its sales, production and consumer service offices. For customers who have purchased homes that have not yet started construction, the company has escrowed their earnest money and" plans to refund it.
Where construction has started but is not finished, the Neumann statement says it is "working with its lenders."
President Obama, in his weekly radio address, tells Congress to act quickly and pass financial reform to prevent economy from sliding into another Depression.
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