Once fast-growing homebuilder now struggling

A once highflying homebuilding firm, Sarasota-based Paradise Homes, has been grounded in financial difficulties over the last month, troubles that culminated in a bankruptcy filing.

The company, founded by Jim Butler, filed for Chapter 7 bankruptcy in federal court in Tampa Oct. 25. That bankruptcy section indicates the company might seek liquidation of all assets, while Chapter 11 is usually a reorganization. Paradise Homes and the related entities named in the bankruptcy filings listed assets and liabilities of between $1 million and $10 million, court records show.

Butler, the subject of a September 2011 Business Review feature story that focused on the firm's strategy and fast growth, didn't return calls for comment. A sales and marketing employee says she and several others were laid off in mid-October.