Code for Walters, Smitty’s, as Others Struggle to Survive
The bankruptcy business, it’s safe to say, is hiring. As the economic and real estate economy crises take their toll, companies on the brink face one of two options. One is a last ditch effort to survive, and Chapter 11 may be that last ditch. The other is to resign to the fact that there are no last ditches left as barriers to fatal insolvency. In that case, a gracious exit may be the only course of action left to take.
That leaves number crunchers with skillsets that translate into reorganizing under Chapter 11, or disposing of remaining assets among creditors with one of the healthier career outlooks over the next 12 to 18 months, while operators hibernate and look to protect their personal assets.
Yesterday, Prosales Magazine editor Craig Webb reported on No. 57-ranked building supply dealer, Alexandria, Va.-based Smitty’s, and its Chapter 11 filing in the United States Bankruptcy Court for the Eastern District of Virginia.
Today, we read that venerable 62-year old southeastern regional home builder Jim Walter Homes has ceased operations, shut down by its parent Walter Industries. Big Builder senior editor Sarah Yaussi gets access to Jim Walter Homes’ former president Larry Comegys–a contributor to Big Builder–for insight into the home builder’s end game.
“Even if the markets had continued hot, they’d still be shutting the company down,” Comegys said. “They just weren’t getting the traction they needed. It would’ve been a tough company to sell even in good times….This is 20 years in the making.”
- Read Comegys’ prescription for surviving the next 36 months on a shoestring in the January 2009 issue of Big Builder.
- ProSales’ Craig Webb also details plans for survival of the nation’s 5th largest lumber- and building materials dealer, Boise-based BMHC, which include exiting the once torrid Northern Nevada market as well as shutting down numerous operations in other markets.
Pencil sharpeners will be the hot item at Office Depot this year. Resumes that emphasize cutting costs will go further into the final consideration set than ever. Those with the patience to understand and withstand legalese should also do well as the litany of home building’s casualties grows by the day.
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