Financially troubled American Home Mortgage Investment Corp. will close for good today, putting about 155 employees in Fort Wayne out of work, the Journal Gazette reports today.
The Melville, N.Y.-based company declared bankruptcy Thursday and senior management said its employee base will be reduced from over 7,000 to approximately 750. The company currently is maintaining its thrift and servicing businesses.
Deborah Sturges, founder of Fort Wayne-based Hallmark Home Mortgage, told the Journal Gazette she heard from numerous former co-workers who received an e-mail from American Home Mortgage founder Michael Strauss confirming the layoffs.
Local employees had already been told to remove their personal belongings from the office, Sturges said. The workers’ last paycheck will be dated Aug. 10, she said. Sturges wasn’t sure whether employees will be paid for next week or whether the company’s payroll cycle has a one-week delay.
Michael Strauss, American Home's Chief Executive Officer, stated on the company's website: "It is with great sadness that American Home has had to take this action which involves so many dedicated employees. The employees affected should understand that this is not a reflection on their efforts or their productivity. Unfortunately, the market conditions in both the secondary mortgage market as well as the national real estate market have deteriorated to the point that we have no realistic alternative." From the Indy Star.
Financially troubled American Home Mortgage Investment Corp. will close for good Friday, putting about 155 local employees out of work.
Newsday reported that the company declared bankruptcy Thursday and that senior management contacted employees later that day and said “none of the strategic options for remaining open had panned out.”
Deborah Sturges, founder of Fort Wayne-based Hallmark Home Mortgage, confirmed she’s heard from numerous former co-workers who received an e-mail from American Home Mortgage founder Michael Strauss saying the last day of business will be Friday.
Local employees had already been told to remove their personal belongings from the office, Sturges said. The workers’ last paycheck will be dated Aug. 10, she said. Sturges wasn’t sure whether employees will be paid for next week or whether the company’s payroll cycle has a one-week delay. From Fort Wayne Newspaper.com
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