How one home builder gained market share during bankruptcy and emerged more efficient than ever.
In 2005, Woodside Homes closed nearly 3,700 houses and generated revenue in excess of $1.4 billion, becoming one of the largest private builders in the United States. Three years later, the company defaulted on more than $730 million in debt after the housing bubble burst and, as a result, filed for Chapter 11 bankruptcy.
North Salt Lake, Utah-based Woodside, like many of its industry counterparts, was effectively broke. Shine’s directive as consultant included determining which areas of the company warranted restructuring, and which should remain intact despite the builder’s financial troubles. Shortly after starting his new gig, Shine discovered Woodside’s previous management had done an admirable job keeping the company lean and employing dedicated professionals who took pride in building a quality brand.
A brief history of Woodside Homes
1977Company founded in Utah1984Woodside becomes top Utah home builder1988Company enters the Las Vegas market1992Entry into the Phoenix market1997Woodside enters the Southern California market1998Entry into the Sacramento, Calif., market2000Division opens in California’s Central Valley and Woodside becomes the nation’s 46th largest builder with 1,786 closings2001Woodside closes 2,225 homes, becoming the 32nd largest builder2004Woodside acquires a Texas builder and enters the San Antonio market. Operations also begin in Fresno, Calif.2005Woodside closes 3,676 homes and becomes the 27th largest builder2008Woodside closes 2,072 homes and is the 20th largest builder2009Woodside closes 1,788 homes2010Woodside emerges from restructuring2010Woodside closes 1,444 homes and sells off East Coast assets to redeploy capital in the western divisions2011Woodside closes 888 homes2012Woodside recapitalizes with $75 million equity and $128 million debt from investors