Katerra Inc. is reportedly closing its Tracy factory at 2302 Paradise Road as the company moves through bankruptcy proceedings.
The 577,000-square-foot factory, which employed more than 500 workers building components for homes and apartments, opened in late 2019. Among the projects the factory was intended to support with pre-assembled walls, floors and other components was the Valpico Glenbriar Apartments, an 11-building project with 244 units on the north side of Valpico Road just west of MacArthur Drive.
Tracy Councilwoman Eleassia Davis said on her Facebook page on Wednesday that she confirmed with Tracy city staff that the Katerra was closing the factory, but the apartments will be completed by a new owner, Guardian Capital.
Katerra announced this week that the company is going through Chapter 11 proceedings under the U.S. Bankruptcy Court for the Southern District of Texas.
“Katerra recently notified its key stakeholders that many of its U.S. projects will be demobilizing,” reads a press release posted on the company website this week, though it doesn’t specifically mention the Tracy factory. The company adds that it is requesting authorization to pay remaining employees and market and sell assets to “facilitate the orderly wind-down of its business.”
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