An Important Update from Village Homes
Wednesday, October 1, 2025
At Village Homes, transparency has always been central to how we operate. Today, we are sharing an important update about the steps we are taking to continue operations and ensure the long-term strength of our business.
Below you’ll find our full press release outlining this decision and what it means for our employees, clients, partners, and community.
Village Homes of Fort Worth Announces Intent to File for Chapter 11 Reorganization
Filing Aims to Continue Operations Amid a Potentially Lengthy State Court Proceeding, Preserve Going-Concern Value, and Position the Company to Emerge Quickly
(Fort Worth, Texas) — Village Homes of Fort Worth announced today that it will file for Chapter 11 reorganization. The company said a potentially lengthy state-court proceeding is impacting operations and relationships across its business, and that a Chapter 11 process is expected to provide a court-supervised framework to move forward. The goal is to preserve the value of the business as a going concern, continue normal operations, and quickly emerge from Chapter 11.
“This is not a decision we take lightly,” said Michael Dike, co-founder and president of Village Homes. “Chapter 11 is the responsible way to continue operations and preserve the value of the business while we work through an issue that has materially impeded the company’s operations. We intend to come through this process intact and keep doing what we’ve done in Fort Worth for nearly 30 years: build timeless homes with integrity.”
According to the company, the issue stems from a 2024 contract to sell 100 vacant lots, the company name, and related intellectual property as part of a planned rebrand and retirement for one of Dike’s original partners. The proposed buyer failed to close and Village Homes terminated the contract. Village Homes has since filed a declaratory judgment lawsuit to confirm the termination. The buyer responded by countersuing and filing a lis pendens notice against each of the lots.
“We entered this deal in good faith,” Dike said. “We believed it made sense for both parties and we assumed that the contract we had signed would be honored. My focus now has to be on minimizing disruption and preserving the business so the people who rely on us — employees, customers, trade partners, and lenders — can count on continuity.”
Dike emphasized that the filing is not lender-driven and that the underlying business remains viable. “Our operations and our lenders are being impacted, but we don’t want them to be harmed by anything we’re doing,” he said. “We expect to maintain ordinary-course operations during the Chapter 11 case. We do not expect to miss payroll. We intend to propose a plan of reorganization that provides for payment in full of allowed creditor claims, and we believe we can move through this process quickly and get back to what we do best — building beautiful homes.”
“I've worked with Michael for almost eighteen years,” said Janet Bishop, Village Homes director of sales and marketing. “He started this company to keep craftsmanship and community at the center of our neighborhoods. We're eager to get back to business as usual, serving those neighborhoods, standing by our work, and remaining part of the fabric of Fort Worth and Parker County.”
That forward-looking view is shared by a longtime lender to Village Homes, Worthington National Bank, whose CEO Greg Morse said, “We have been proud to do business with Village Homes and its principals for over 20 years. The owners have impeccable character, period. Tough times don’t last, but tough people do — and we look forward to continuing our relationship with Village Homes in the future.”
ABOUT VILLAGE HOMES
Since its founding in 1996, Village Homes of Fort Worth, Texas has earned a reputation for building unique and inspiring homes that combine modern livability with classic architectural character and quality. Through almost 30 years in business, the company has helped make the dreams of over 1,500 homeowners come true, while sharing close relationships with the area’s finest architects, craftsmen, trade contractors and vendors.
For more information, visit homesofcharacter.com.
Addressing Common Questions and Concerns
We know you may have questions about what this process means in practice. We’ve prepared answers to the most common ones below. For anything else, please contact us.
Q: Why did you file for Chapter 11?
A: Chapter 11 gives us a court-supervised path to continue operations and preserve the value of the business as a going concern while we work through an issue that has materially impeded our operations.
The issue stems from a 2024 contract to sell 100 vacant lots, the Village Homes name and related intellectual property as part of a planned transition for a retiring partner. When the proposed buyer failed to close, we terminated the contract and filed a declaratory-judgment lawsuit to confirm the termination. The buyer countersued and filed lis pendens notices against each lot, which has impacted operations and relationships across our business.
Chapter 11 is the responsible way to protect the business as we move toward a resolution and we hope to quickly emerge from the reorganization.
Q: Will construction and closings continue?
A: Yes. We are still building, selling, and closing homes. Our goal is to minimize disruption, and if any timelines adjust, we will communicate directly.
Q: Are home warranties still valid?
A: Yes. Home warranties remain in effect, and the coverage and claims process have not changed.
Q: Will vendors and trade partners still be paid?
A: Yes. We intend to propose a plan of reorganization that provides for payment in full, while keeping day-to-day operations intact.
Q: Who should I contact with questions?
A: For buyers under contract or in construction, Janet Bishop remains your best point of contact. For warranty questions, please reach out through warranty[at]homesofcharacter.com.