FORT COLLINS – Home builder Bluestone Homes of Colorado LLC, which has been the target of several recent lawsuits, has filed for Chapter 7 bankruptcy protection.

Under Chapter 7, a bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay creditors or other holders of claims under the terms of the Bankruptcy Code. That code also allows the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets.

In the Oct. 31 filing, the Fort Collins-based company, which was founded in 2009 by Terence Hoaglund, reported that it owed $2.4 million to 52 creditors including customers and contractors. Bluestone reported revenue of $780,000 for the first 10 months of 2023 compared with $2.7 million for the entire year of 2022 and $6.4 million in 2021. The company reported $171,876 in current assets.

The lawsuits against Bluestone will be stopped by the bankruptcy.

One of them was filed Oct. 18, less than two weeks before Bluestone’s Chapter 7 filing. John and Tamara Ohlendorf sued to get a $35,000 deposit back that they claim they paid Bluestone to build a home for them in Severance. In their court filing in Larimer County District Court, they say they sold their previous home in February believing they’d be able to move into the one Bluestone was building, but added that completion kept getting delayed and that the lot the house was to be built on was sold to another party in July.

Bluestone also faced a trial next February in a lawsuit by Mark Fuerte Concrete, which claimed Bluestone owed it $170,000. A lawsuit filed in April by Fossil Creek Drywall and Builders FirstSource claimed it was owed a total of $224,318 for materials and labor.

Neither Hoaglund, who also founded Vignette Studios in 1998 and was a managing partner at Wildflower Homes LLC from 2000 to 2006, nor his attorney, Algirdas Mykolas Liepas, who practices in Fort Collins and Cheyenne, returned calls seeking comment.