Arkansas Builder Supplier Files Bankruptcy

Springdale, AR, Dec. 14, 2009--National Home Centers Inc. of Springdale, a materials supplier to home builders in northwest and central Arkansas, filed for Chapter 11 bankruptcy Dec. 8, according to Arkansas Business.

Dwain Newman, CEO and founder of the company, said the decision was made Dec. 7 as he and other officers tried to renegotiate with a lender.

"We could not reach a resolve," he said. "It's certainly the company's last choice. It is our mission in life to pay our creditors but we're frozen [for the time being]."

Newman said the lender was CIT Group Inc., which ironically, gained a judge's approval for its own Chapter 11 reorganization plan. 

National Home Centers listed both its assets and liabilities between $10 million and $50 million, with between 200 and 1,000 creditors.