The owners of MyddeltonParker Builders LLC have both filed for personal bankruptcy protection with the U.S. Bankruptcy Court in Tallahassee. The Florida home builders were featured on “Extreme Makeover: Home Edition” in 2009 when they were chosen to help build a home for a family whose father was suffering from brain cancer. The two men were recognized as Tallahassee’s top builders and also as “Leader of the Year” for their work on the “Extreme Makeover” home. However, since 2009, the company has been struggling to pay debts to subcontractors and both men filed Chapter 7 bankruptcy in November 2010.
The builders’ attorney explained that the decision to file bankruptcy is completely related to the economy. The executive director of the Tallahassee Builders Association commented, “They are the poster children for what’s happened in the construction industry.” The men reportedly took out second mortgages, used personal assets and did not receive compensation for months in order to pay subcontractors and keep customers happy in efforts to maintain the business. The home builders’ options eventually ran out and they filed for bankruptcy.
According to the bankruptcy filings, one owner reported $981,671 in assets and $4.6 million in liabilities. The other owner reported $696,560 in assets and $4.4 million in liabilities. The business owes about $3.4 million in unsecured claims to nearly 100 local businesses who have worked on homes as subcontractors for the company.
The attorney for the owners of MyddeltonParker said that the downturn in the economy hit the business hard, especially since the housing industry has severely plummeted in Florida. The owners have realized that the economy will not turn around quickly enough for them to salvage their business, and bankruptcy has been their last resort in efforts to mend their financial woes.
The Wall Street Journal: “Florida Builder Lands in Bankruptcy After TV Gig,” Rachel Feintzeig, 7 Mar. 2011
Tallahassee.com: “‘Extreme Home Makeover’ builders go from boom to bust,” Jennifer Portman, 6 Mar. 2011