Village Homes, a Fort Worth-based homebuilder, has filed for bankruptcy as it faces an ongoing legal dispute with Dallas developer Olerio Homes. The conflict centers on a failed agreement from last year involving the sale of 100 vacant lots and the Village Homes brand, which was part of a planned rebrand and retirement strategy for one of Village’s founders.
According to court documents, Village alleges that Olerio did not secure financing and withdrew from the deal after making a $300,000 deposit. In response, Olerio claims that Village wrongfully terminated the agreement and has filed suit in Tarrant County seeking damages and control over the lots. In May, a court order prevented Village from selling the land; an attempt by Village to overturn this order in August was unsuccessful.
Village co-founder and president Michael Dike stated, “This is not a decision we take lightly,” emphasizing that the company plans to continue paying employees, vendors, and lenders. He described the bankruptcy as an opportunity to restructure and “come through this process intact.” Dike also clarified that the filing was not prompted by lender action.
The bankruptcy allows Village Homes to continue its operations while navigating the dispute. Since its founding in 1996, Village has built more than 1,500 homes in Fort Worth neighborhoods such as Walsh Ranch and Linwood. The company is currently constructing luxury townhomes in Stonegate with offerings ranging from custom single-family homes to condos and townhomes priced between $290,000 and over $2 million.
Olerio Homes remains active in Dallas’s luxury homebuilding sector.
The ongoing litigation has left Village’s development projects on hold and created uncertainty around its branding as it seeks protection through bankruptcy proceedings.
