Gemcraft Homes files for Chapter 11

Baltimore-based builder Gemcraft Homes filed for Chapter 11 bankruptcy protection Monday "because of the economic and market conditions existing in the land development and homebuilding industry," the company said.

Gemcraft has two developments in the eight-county Philadelphia area: Penn's Manor in Kennett Square and Hills of London Grove in Avondale.

Gemcraft president Bill Luther said he expected to have $37 million in new financing from existing lenders and "a related party."

Company advertising director Kimberly Kemp said the business would operate normally during the bankruptcy.

- Alan J. Heavens