Village Homes, a homebuilder based in Fort Worth, has filed for bankruptcy amid an ongoing legal dispute with Dallas developer Olerio Homes. The move comes as Village Homes seeks to continue its operations while the case proceeds.
The dispute centers on a failed agreement from last year involving the sale of 100 vacant lots and the Village Homes brand. The deal was part of a rebranding and retirement plan for one of Village’s founders, according to reporting by the Fort Worth Star-Telegram. Village claims that Olerio did not secure financing and withdrew after making a $300,000 deposit.
Olerio, on the other hand, alleges that Village improperly terminated the agreement. The company has filed suit in Tarrant County seeking damages and control over the lots involved. In May, Olerio obtained a court order preventing Village from selling the land. A subsequent attempt by Village to overturn this order was denied in August.
“This is not a decision we take lightly,” said Michael Dike, co-founder and president of Village Homes. He stated that the company plans to continue paying employees, vendors, and lenders during this period. Dike described the bankruptcy filing as an opportunity to restructure and “come through this process intact.” He also emphasized that “the filing is not lender-driven.”
Village Homes has been active since 1996 and has completed more than 1,500 homes throughout Fort Worth. Their projects include developments in Walsh Ranch and Linwood, with current construction underway on luxury townhomes in Stonegate. The company offers custom single-family homes as well as condos and townhomes priced between $290,000 and over $2 million.
Olerio Homes is known for its work in luxury homebuilding and custom projects within Dallas.
The unresolved conflict has resulted in delays for Village’s development pipeline and uncertainty regarding its branding efforts while it works through bankruptcy proceedings.
