Jim Walters Homes Shutters Its Doors

Jim Walter Homes, a fixture in the modular building system business since 1946, announced today that it is closing, according to a press release by the parent company, Walter Industries. Company execs attributed the closure of the subsidiary to the collapse of the housing market. Jim Walter Homes, which became known as the company that would build a buyer's dream home on the buyer's site, built more than 350,000 homes during its history, but has not been profitable in several years.

"The story of Jim Walter Homes began as World War II ended and soldiers came home to pursue the American Dream," Walter Industries chairman Michael T. Tokarz said in a statement. "Regrettably, it ends at a time when the fundamentals of the home-building industry have deteriorated in ways never seen before."

While sales efforts ceased immediately, the company will honor its obligations to customers with homes under construction as the business winds down.

As of Dec. 31, Jim Walter Homes had about 150 homes under construction nationally. About four of those are in the Charleston area, according to branch manager Chris Davies. Walter Homes also has South Carolina sales center in Cayce and Florence.

Customers with questions about homes under construction can call 1-800-925-8374, extension 4444.

Tampa entrepreneur Jim Walter founded Jim Walter Homes in November 1946, when he used $395 in savings to buy and sell his first "shell" home, for a profit of $300. As a result of the success of Jim Walter Homes, Jim Walter was able to build a Fortune 500 conglomerate with businesses as diverse as mortgage financing, coal mining and ductile iron pipe manufacturing. The company completed its spin off of Mueller Water Products, which encompassed its interest in the ductile iron pipe and water products businesses, in December 2006. Mueller Water Products continues to be listed on the New York Stock Exchange today.

For the last several years the Company has pursued a strategy to create shareholder value by concentrating on its core natural resources and energy-related businesses. The company expects to complete this strategy when the planned spin off of the Company's Financing business is completed in early 2009.

"Once we complete the separation of our Financing business, Walter Industries will be re-positioned as a "pure play" natural resources and energy company," Tokarz said. "The businesses that comprised Walter Industries when we undertook this important strategy will soon exist independently as three publicly traded companies and, in the process, we will have created significant value for our shareholders."

Despite the efforts of Jim Walter Homes' management and employees, including a major restructuring in 2008 that closed nearly half of the Jim Walter Homes' sales centers, the business has remained challenged. Efforts to sell the business were unsuccessful in the face of the unprecedented conditions in the housing industry and tightness in the credit markets.

Approximately 230 people will be affected by the closure, including approximately 45 employees of the Jim Walter Homebuilding Group's headquarters in Tampa.

Closed branches include: Albany, Ga.; Birmingham, Ala.; Alexandria, La.; Albuquerque, NM; Asheville, NC; Columbus, Miss.; Baton Rouge, La.; Beaumont, Texas; Cayce, SC; La Grange, Ga.; Bryan, Texas; Charleston, SC; Montgomery, Ala.; Hammond, La.; Cleveland, Texas; Fayetteville, NC; Muscle Shoals, Ala.; Hattiesburg, Miss.; Corpus Christi, Texas; Florence, SC; Columbia, Tenn.; Houma, La.; Ft. Worth, Texas; Jacksonville, Fla; Byhalia, Miss.; Laurel, Miss.; Houston; Panama City, Fla.; Oxford, Ala.; McComb, Miss.; N. San Antonio, Texas; Pensacola, Fla.; Phenix City, Ala.; Meridian, Miss.; Oklahoma City, Okla.; Savannah, Ga.; Tupelo, Miss.; Pearl, Miss.; Rosenberg, Texas; Tallahassee, Fla.; Tuscaloosa, Ala.; Shreveport, La.; Terrell, Texas and Tyler, Texas.

Those employees affected by this announcement will be eligible for unemployment compensation and are expected to receive severance benefits in line with Company policy.

The Company stressed that while sales efforts will cease immediately, Jim Walter Homes will meet all of its obligations to customers with homes in progress as the business is wound down. At Dec. 31, 2008, Jim Walter Homes had approximately 150 homes under construction.
Tokarz added that Tampa will remain the headquarters for Walter Industries. The approximately 50 corporate employees are not affected by this announcement.

"Walter Industries has a long history in the Tampa community -- a history we are excited to continue following our transformation," he said.

Following the spin off, the Financing business, which will operate as Walter Investment Management, will also be based in Tampa.