Sullivan Homes Idaho closes its doors

SANDPOINT - Less than two months after Spokane-based Sullivan Homes Inc. abruptly went out of business, Sullivan Homes Idaho followed suit Wednesday with its own unexpected closure.

Sullivan Homes Idaho, which shares family ties but has no financial connection to Sullivan Homes Inc., went a year without selling a custom built or speculative home, according to owner Todd Sullivan.

Sullivan said there had been considerable interest in homes throughout the year, with the company submitting bid letters on as many as 28 projects.

"It's really just a sign of the economy, but not one of them came through," Sullivan said of the prospective clients.

Sullivan said he is unsure about the company's level of debt to local banks and subcontractors, but several news sources have reported the number to be as high as $13 million.

The company, which was involved in construction of a home for the television show Extreme Home Makeover in 2005, opened in 2006. It currently owns four finished homes and several others in various stages of completion, and Sullivan has not decided how he and his wife, co-owner Lori Sullivan, will proceed with the assets.

"First and foremost, my moral duty is to try to do everything I can for all the subcontractors, vendors and homeowners. That will really lead us in what direction we need to go," he said.

Due to the nature of the business, Sullivan said his personal assets will most likely be affected by the closure.

"With a home-builder, you're so intertwined financially that the loss of a company is a loss of all your personal stuff, too. So financially, we're going to take a very significant personal setback," he said.

The nationwide housing crunch has hurt home builders at every level, but Sullivan believes it is the midsize companies, like his own, that have taken the brunt of the force.

"The midsize builders, the family home builders, we're in dire straits. People just aren't buying. Imagine going a whole year without selling a newspaper or not selling whatever it is you're trying to sell. It's just not possible to do that and stay in business," said Sullivan, who estimates as many as 80 percent of all mid-size builders could end up falling victim to the housing crunch.

While he does not know what his future holds, Sullivan said he would love to be able to stay in Sandpoint.

"It's been so wonderful living and being in Sandpoint," Sullivan said. "The community has been so supportive. Today has been a god-awful day, yet we've had so many people call us and say, ‘Hey, hang in there.'"