The 32-year-old developer Lauth Group Inc. likely will survive in some form if the company can find financing to get it through
a Chapter 11 reorganization and if the real estate market doesn’t take too long to turn around, experts said.
Lauth, a once-booming developer, has sliced 90 percent of work force, lost control of some properties
Struggling developer Lauth Group Inc. has cut about 90 percent of its staff and lost control of part of its portfolio to a
major equity partner-developments that raise doubts about whether the locally based company can survive the recession.
Kite Realty Group Trust has joined local peers Duke Realty Corp. and Lauth Group Inc. in laying off employees as it copes
with dried-up credit and a soft retail market.
The CEO of locally based Lauth Group Inc. says most people he knows in the business, even the steely types who always project
optimism, are privately nervous about the economic morass that began with a collapse in subprime mortgages.
A who’s-who of local firms is planning bids to redevelop the Market Square Arena site with mixed-use projects that would depart
sharply from previous efforts focused on residential. New plans are expected to include retail , offices, apartment units
and condos backed by high-profile local developers that didn’t bid before.