ZenniHome Announces Closure of LeChee Factory, Impacting Navajo Jobs, Homes, and Community Development

​

Page, AZ - ZenniHome, a leading builder of sustainable and culturally responsive modular homes, today announced the closure of its factory operations in LeChee, Arizona. This decision follows a year of contractual breaches, delays, and political interference that have caused over $47 million in unrecoverable losses for the company, the latest of which was a $22 million contract reduction on July 3rd, 2025.

​

The closure directly affects more than 210 employees at the LeChee facility, the vast majority being Navajo citizens. Established to provide meaningful employment and economic development, the factory also aimed to deliver energy-efficient, steel-framed homes designed specifically for the Navajo Nation.

​

“ZenniHome entered this partnership committed to serving the Navajo people by creating jobs, building homes, and promoting self-sufficiency,” said Bob Worsley, CEO of ZenniHome. “We designed culturally responsive homes tailored for the Nation and built a workforce composed of Navajo citizens. Unfortunately, our efforts were met with broken promises, political infighting between the executive and legislative branches that led to ZenniHome being a political football, and bureaucratic dysfunction that made it impossible to continue.”

​

ZenniHome invested millions into community housing initiatives, workforce development, and infrastructure projects in the Navajo Nation. The company created the Hóóghan Zhóní housing solutions, featuring designs that honor Navajo culture and traditions. Despite these initiatives, progress was hindered by delays, contract cancellations, unilateral material modifications, and political interference. 

​

Throughout the partnership, ZenniHome diligently followed the Navajo Nation’s 164 review and approval process at every stage. All contracts and funding requests underwent the Nation’s required administrative, legal, and financial review channels, including formal sign-off from the Navajo Nation Department of Justice and the Office of the Controller. ZenniHome took great care to comply with every applicable regulatory, business, and procurement provision -ensuring full transparency and adherence to tribal protocols before moving forward with work. This extensive process was followed not only to meet legal requirements, but also out of deep respect for the Nation’s governance structure and sovereignty.

​

Key challenges included:

• A five-month delay between contract award and initial funding, forcing ZenniHome to start work without reimbursement.

• Workforce turnover exceeding 150% annually, impacting project continuity.

• Delays in home site selection and favoritism toward competing vendors getting site selection first, and the competing vendors having no local hiring requirements.

• Political interference reducing the planned work order from $44 Million for 160 homes to just $22 Million for 80 homes.

​​

These issues culminated in a $22 million financial loss just last week combined with the cancellation of a previously allocated $24 million grant in June 2024, forcing the company to cease operations in LeChee.

Importantly, ZenniHome offered the Navajo Nation an opportunity to assume full ownership and operation of the factory to preserve jobs and continue production, but this offer was declined.

​

ZenniHome has notified Navajo Nation leadership of its decision.

​

“We deeply regret the impact on our employees and families waiting for homes,” Worsley said. “We remain proud of the homes we designed and have built to date, and the team we assembled; ‘Built on Navajo, by Navajo, and for Navajo’ reflected our commitment.”

Worsley added, “No company can withstand this level of political, contractual, and financial instability. Our priority now is protecting our business and fulfilling commitments to investors, stable partners, and employees.”

​

He expressed gratitude to the dedicated Navajo workforce and respect for the community’s resilience. Worsley concluded by wishing strength and success to all Navajo colleagues and their families.

​

While closing the LeChee facility is a difficult chapter, ZenniHome remains committed to fulfilling its contractual obligations where partners remain engaged in good faith - including, if possible, continuing work with the Navajo Nation from another factory. The company will continue its mission nationwide to transform housing with smart, factory-built homes that honor cultural values and foster economic growth in underserved communities.

 

About ZenniHome

ZenniHome builds sustainable, high-quality modular homes designed to meet cultural and community needs. Focused on innovation and partnerships, ZenniHome aims to address housing challenges while supporting economic development across the United States.

 

Media Contact

Kristen Bryan

media@zennihome.com

https://www.navajohomes.com/

​

​

​

​

​

​

​