Florida's Mercedes Homes winding down business operations; Melbourne-based builder once built homes in four U.S. states
March 9, 2012
– Mercedes Homes of Melbourne, Florida, appears to be going out of business.
A statement on the company’s website under the heading “Liquidation Disclosure” states that “Mercedes Homes, LLC, a Florida limited liability company, and its subsidiaries and affiliates (collectively "Mercedes Homes") have initiated a plan of liquidation ("Plan") to wind down and conclude business operations.”
Although it is still apparently selling its remaining homes, the statement says that, because Mercedes Homes will be concluding its business operations, it “extends no warranties, either express or implied with respect to any home sale,” and that the only warranty available would be issued by unaffiliated third-party home warranty provider Bonded Builder.
According to a report by The St. Augustine Record on March 8, Mercedes Homes—also called Mercedes Premiere Homes--once built housing in more than a dozen communities in St. Johns County and Jacksonville.
The homebuilder's website states it has communities in Texas, North Carolina and South Carolina. However, Industry Intelligence on Jan. 20 picked up local media reports that Mercedes had pulled out of several markets and appeared to have halted homebuilding across its entire territory.
Jason Sessions of Sessions Development, master developer for Durbin Crossing, one of the St. Johns County communities Mercedes was active in, said the builder was still selling a few homes in the community but had not been buying lots from the developer for three months.
Sessions said Durbin Crossing itself was doing well, as were other builders involved with it, adding: “Unfortunately, in these economic times Mercedes Homes was not able to continue doing business.”
According to an article on the Builder Magazine website, Mercedes filed for bankruptcy in 2009 and expected to emerge a stronger company. A Tampa Bay Times article noted Mercedes was once the 20th largest builder in the U.S., and had built more than 20,000 homes, The St. Augustine Record reported.
The primary sources of this article are a statement on the website of Mercedes Homes and an article by The St. Augustine Record, St. Augustine, Florida, March 8, 2012.