Barclays North to Close Doors July 4
From a written statement from President Pat McCourt:
Barclays North took a number of steps to address its financial matters, which included layoffs, consolidation of our operations, freezing the status of current projects and an accelerated effort to sell our projects.
Every effort has been made to clearly, consistently and frequently communicate our status with our employees, lenders and vendors.
Unfortunately, circumstances are such that some obligations have not been resolved and we have no other option at this time but to cease operations. We still do not intend to file bankruptcy, but it is a possibility.
The Herald has more here.
Labels: barclays north, lake stevens
posted by Kevin Hulten at
12:24 PM
1 Comments:
Anonymous Tom Matlack says,
KH,
Several articles blamed the demise of BNI on builders walking away from developed land leaving BNI with all the unrecovered costs of site work,mitigations,permits, payroll, etc. But, not surprisingly, there may be other contributing factors as well...
When the Herald/Journal 1st reported on lay-offs at Barclays last summer(?) a local part-time developer told me BNI was "leveraged up to its elbows." Some quick refresher studies in finance tells us that leveraged equity is the common practice of using debt to finance more loans. In such a cyclical industry as housing, leveraged equity could lead to a house-of-cards effect.
In the June 19 Herald article on "Barclay's Bust" by Debra Smith she says BNI has maybe "100 creditors." Dude! Even in the heady days of explosive residential growth, 100 outstanding loans, for a private company, seems like a lot.
Finally, in many circles, real estate development is also called real estate speculation. The rewards can be extraordinary, but the risks are equally imposing.
Anonymous BA and I were gonna save our Girl Scout cookie money(it's alot!) and buy the BNI Nourse property on Callow Rd., which is in foreclousre now for $3.3 million. Nahhh. I'll stick to my day job.
Tom Matlack
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