Kimball-Hill

[Beachlover2]

Talking to a friend this weekend who use to work for Kimball-Hill Homes. They have shut down their Oregon operations and she lost her job - but she was offered a job in FL because Kimball-Hill thinks that FL real estate will come back quicker than the rest of the states. Not too many people were offered the transfer - but I think it is interesting to note that they think FL will come back sooner. Hurricane season might be a determining factor there.

 

[SHELLY]

Talking to a friend this weekend who use to work for Kimball-Hill Homes. They have shut down their Oregon operations and she lost her job - but she was offered a job in FL because Kimball-Hill thinks that FL real estate will come back quicker than the rest of the states. Not too many people were offered the transfer - but I think it is interesting to note that they think FL will come back sooner. Hurricane season might be a determining factor there.

Kimball-Hill is suffering along with all the other homebuilders in the nation. They've taken a pretty good financial hit and have warned that they will be breaching their covenants on $500M of unsecured credit (there goes their credibility when they go looking for finance down the road). They are exiting the Oregon and Milwaukee markets...scrambling to regroup and cut expenses; moreover, Mr Hill, their CEO (it's a privately owned company) is in treatment for skin cancer and has said he is focusing all of his attention on getting well.

Kimball-Hill does not have rosy outlook on FLA housing--they're losing money here too.

Obviously your friend is a good and loyal employee the company would like to retain...but if she was given the impression that Florida is the promised land for homebuilders at this point, she's been duped. Is the company willing to foot the bill for her household move and sale of her home in Oregon; pay for temporary lodging and house-hunting expenses; and provide a binding (minimum) 3-year contract for her current salary at the level she's being paid in Oregon...to include yearly bumps? If not, she's may want to consider staying put.

Me thinks Kimball-Hill will be looking to be bought-out by one of the big guys (Lenner, DRH)--if that happens, your friend may find herself looking for a job here in Florida (luck for her our unemployment rate is WAY LOW--how does she look in a paper hat?)

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[Beachlover2]

Shelly

Didn't really inquire into the offer they gave her - she is unable to consider it because like some many of our friends she has an ill mother she is caring for. She also made the remark she wasn't sure if she agreed with them about FL - but thought she would let me know their thinking. I too am not overly positive about the real estate market - but appreciate receiving little bits of info from other sources - even you Shelly!!!!