Forest Hill’s Gemcraft Homes bankruptcy filing can’t be good news for the local economy

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This can’t be too good for the local economy. I just saw a Baltimore Business Journal post on Twitter announcing that Forest Hill based Gemcraft Homes filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Baltimore on Monday. According to the story, Gemcraft, one of the region’s largest homebuilders, expects to receive new financing from Regions Bank and M&T Bank. The story quotes a statement from Gemcraft’s president Bill Luther saying:

“Most importantly, we anticipate that the new financing, with the court’s approval, will ensure that Gemcraft Homes can complete building the many homes now in various stages of construction, so that our customers receive what they expect — a home of high quality and great value.”

 According to a Baltimore Sun story on the filing:

“Seven of Gemcraft’s affiliated companies filed separate Chapter 11 petitions, including Gemcraft Homes Group Inc., Gemcraft Homes Forest Hill LLC, Gemcraft Chesapeake LLC, Harkins Property LLC, The Preserves at Jefferson Creek LLC, S&M”

Three local companies are listed in the BBJ story as being among Gemcraft’s  largest unsecured creditors:
84 Lumber, of Joppa ($918,245)
Bustamante Concrete, of Abingdon ($706,760)
Dixie Construction, of Churchville ($618,132)

That’s a lot of money that won’t be greasing the wheels of our local economy any time soon.