Sparta Homes, building a new Signal Mountain subdivision, has filed for Chapter 11 bankruptcy, said an attorney representing lender First Tennessee Bank.
Justin Sveadas said the bank was seeking to foreclose on Sparta Homes relating to Dogwood Grove off Shackleford Ridge Road. But, that won't move ahead due to the bankruptcy filing, he said.
Mr. Sveadas said Dogwood Grove developers are expected to continue to try to sell lots in the meantime. He said no more than six of the 24 lots had been sold so far.