Beazer may be following them soon:
Beazer to delay some payouts
Nashville letter tells contractors to expect wait
MIKE DRUMMOND
mdrummond@charlotteobserver.com
Beazer Homes USA will delay paying subcontractors in at least one city where it builds homes, as the company struggles to ride out one of the most severe housing slumps in recent history.
The Observer obtained a letter dated Nov. 5 and signed by Beazer Nashville division President David Hughes, who said "effective immediately" the company would hold up payments.
"It is unfortunate, but we cannot continue the prompt payments you have received in past years," the letter stated.
It is unclear how this policy specifically differs from Beazer's previous payment schedule, and if it extends beyond Nashville.
The company did not respond to requests for comment Friday.
Beazer's letter comes amid a string of grim financial news throughout the housing industry. This week, luxury homebuilder Toll Brothers joined others in releasing preliminary fourth-quarter results that showed a sharp drop in the number of new homes sold.
Nita Hunt, president of plumbing contractor Falapco Inc. in Charlotte,
said she has been doing business with Beazer for 15 years. "I've never had a problem with them," she said, "and I can't imagine they'd send a letter like that."
http://www.charlotte.com/business/story/356321.html
<Apparently Nita is using the other kind of 'pipes, joints and dope' at her plumbing business too.>
