Simplex Open House

Friday, May 6, 2016

Innovative Building Systems Files for Bankruptcy



Keiser Homes in Oxford, Maine has closed, displacing more than 100 workers and leaving a measurable hole in the area's workforce.

According to the Maine Department of Labor, Innovative Building Systems, whose Excel Homes division purchased Keiser Homes in 2013, has closed the Oxford-based modular home business.


Julie Rabinowitz, a spokeswoman for the Department of Labor, told WMTW-TV that "at least" 120 people will lose their jobs.

According to the Department of Labor, Innovative Building Systems will also be closing the rest of its facilities across the United States and is filing for bankruptcy.

CLICK HERE to read the entire Oxford Hills Sun Journal article.

or 

Click Here to watch the TV report

More news about this development to follow as it becomes available.

26 comments:

Anonymous said...

This couldn't have happened at a worse time, just as modular housing is making huge inroads into more custom homes and commercial work.

My business will survive and grow in spite of this news. We are builders and people will always need houses. We are MODULAR builders and proud of it.

William aka "Little Bill" said...

My thoughts and prayers go out to ALL of the employees at the plants owned by IBS. I am sure everyone of them are good people and hopefully they bounce back up on their feet. Best of luck to all of the employees of IBS.

Anonymous said...

It was only a matter of time. You can't buy up all the other factories just so you don't have competition. They bought Future and never reopened the factory. Knew this was coming when they started shipping houses without doors and windows.

Anonymous said...

Corporate jocking and intrigue in this situation should be a movie. Just spent some time reading older Modular Coach postings on the cast of players from H.I.G. to the various plants and players.

Ron G said...

Thoughts and prayers that all the great employees will find even better opportunities and that especially all the Great Builders will find Quality Factories to build their clients homes ! Ron G

Anonymous said...

Here's some more BREAKING NEWS.......
IBS will be bought in the bankruptcy court proceedings by a major player and the company will come back stronger than ever. So, for all the nay-sayers and competitors who are relishing this news, celebrate quick, because the landscape will change in a hurry!

Coach said...

I'm getting a lot of comments about this story and most are either positive or talk about it candidly from an inside perspective.

There are also a lot of negative comments that will probably never be made public because they are either slanderous or downright negative about the industry.

Anonymous said...

I hope whoever is buying them don't drag their feet. As of the filing, the employees will have to look for work or lose their UC benefits. If the new compaNlny waits to long they area going to lose a lot of talented and experience workers to competitors. Several companies have had openings posted for the past couple weeks in hopes of acquiring some of excel key players.

Perspective said...

It is unfortunate for the people who work at these plants and their families. But, it is all part of an industry correction process. Big Capital firms take a flyer on an industry based on some trends but they do not tip toe in they go whole hog and it does not pan out. For the people it is huge, for the Capital firms this will be a write off. For the industry? hopefully we come out stronger on the other side. Excel Homes in PA is a victim more then a culprit. 6 other plants in historically under performing markets dragged down the whole ship and Excel was on board. I do not think it will be long before you see someone start that plant back up in some fashion and hopefully bring those people back to work.

Paul Oliveira said...

Why filter comments that would help people that have been damaged by IBS?

Their goal is to segregate all builders, families, and vendors. Please dont help them.

Anonymous said...

y'all need Excel producing homes. Every facility in this modular rich valley has employees tied to Excel in some form. Don't worry about Excel being down,i'd be more worried about what happens when they resolve their financial problems. The decisions of a few knuckleheads will not keep that factory dark very long. watch and see...

Anonymous said...

The landscape is going to change but you have to remember that any 'major players' that can make this buy are primarily manufactured housing oriented and if they build modular, they build smaller less complex homes and not the more custom homes that Liverpool builds. And will this 'major player' be willing to buy all 5 remaining plants.

Anonymous said...

A smart 'major player' would buy the whole shootin match,unload the other 4 facilities and focus on Liverpool. I guarantee it'd be worth the hassle. That place has been a moneymaker for years and with proper mngmnt,will continue to be..just sayin

Anonymous said...

Lot's of talk about jobs and the "moneymaker" plants. I wonder how many poor saps out there still think they have a house coming because they put a deposit down in the last few months.

The idea that a "major player" is going to be starting one of these plants up anytime soon probably sounds better than "there are layers upon layers of secured creditors and a mountain of debt so high we we can't find the good parts through the crap". These plants might be coming back but not soon or with any resemblance to the current dumpster fire.

Employees that were still there to the end have known for years it was coming, but it's customers who are about to get lit up.

Aksana Tanner said...

It is devastating to see such a large construction company go under during the times of new construction coming back after years of inactivity. I'm a new builder that signed up with one of the IBS's plants to build homes. My house is still at their premises. At worst, I will have to go through courts to get it back. It has been paid for in full including delivery and installation. At best, I will lose money I paid for delivery and set-up. It's affecting not only hundreds of people who worked nationwide at IBS's plants. It affects many builders who was doing business with IBS. What an experience for my first new construction project!

Anonymous said...

it is always about the"builder". Countless people outta work now unable to help ya make your profits. Meanwhile yall move on to the next factory to build ur houses and make ur money...what about the guy on line makin $13/hr who had not one thing to do with any of this crap. Have a little compassion. yall been robbing these places blind for years,but no one tells that side of the story

Anonymous said...

This situation has a negative impact for everyone from the plant staff, to line workers, to builders, to local sub-contractors, and finally to the home buyer who was expecting a new home for their family.

Builders buying from plants have their own circles of families to support from their own to those of their sub-contractors and local sales agents. In Ms Tanner's case she will be spending dollars to hopefully receive the home she paid for that is sitting in a plant yard, spending dollars to potentially defend a law suit from her buyer for a breach of contract; and a family who may be facing legal action from a construction lender.

Everyone one of us reading this blog has compassion for all who are or who may be negatively impacted and pray that circumstances will permit the minimal amount of disruption in everyone's lives.

Home building is a tough competitive business and this is not the first nor will it be the last in closures or bankruptcies engaged in the industry. We all remember the housing "bubble" and its pain.





Anonymous said...

Aksana,

Today is the day to go get your property and get it offsite. It may cost you money and you may lose something but if you think that getting it back from bankruptcy is easy and fast you are wrong. It could be 6 months or a year and you will get nothing or maybe pennies on the dollar. Get a toter truck and get the property you paid for today!

Aksana Tanner said...

I do feel bad for everyone who lost their jobs... I spent my lifetime savings on my first spec house. I haven't seen any profits yet. Losing all of it would put me to ground zero. Yes, I will be looking for a new modular company to do business with. All of the workers, who lost their jobs, will be looking for the new jobs. We all are going to adjust and move on. Life is about adopting to the situation and making necessary changes to stay on top of things. I'm wishing all the best to everyone who is affected by IBS ceasing their business operations.

Aksana Tanner said...

Thank you....

Aksana Tanner said...
This comment has been removed by the author.
Anonymous said...

If I were those employees I would look at this as a blessing and take the opportunity to find a new position and hope that IBS management does not follow. This corporation has been miss managed for years. This will be Excel's 5th time going through the process of bankruptcy.

Anonymous said...

This is a disaster for every Excel employee and also for Excel's customers (the builders and their customers). The people that worked at Excel, were the greatest!
I am a builder who has been a very long time customer of Excel. I have spent many years promoting Excel as a brand.
This whole matter was poorly handled......a disgrace.
They owe me significant money, which I presume, I will never see.
On the other hand, I WILL NEVER BUY from Excel again.

Anonymous said...

im sure you are right that you will never buy from Excel again. Please,please keep in mind that if that factory fires back up under different ownership,there will be probably be a large amount of the workforce that you know in your heart was the lifeblood of that "Excel" brand. Im sure with some guidance and patience,the quality you speak of will return,regardless of whose paying the bills. i understand your frustration,believe me. Good people,good quality,years of relationships cant be destroyed bean counters.. please dont let that happen

Anonymous said...

What is going to happen to the warranties on my home? It was completed on March 2016. I'm I out of luck if something goes wrong?

Anonymous said...

The one year home warranty is a great question....we have some issues with our home (still within the year warranty) and have received notice that we will have to complete bankruptcy forms in order to have the possibility of these repairs covered. As we understand it, our home was one of the last homes that came out of the Hand Crafted Homes factory in December of 2014 right before the company was purchased by IBS. We had multiple issues with the set of our home but IBS was excellent and worked with us to make sure that everything was corrected at that time. I hope that the issues that we have currently that should be covered under our home warranty are covered. We hope they are - but we are not holding our breath!