Homebuilder Jim Walter Homes, a subsidiary of Walter Industries (NYSE: WLT), with offices in 12 states and 45 cities, has shut down.
The company built more than 350,000 homes during its history, but has not been profitable in several years.
The Fortune 500 company, which also is involved in iron pipe manufacturing and coal mining, said it expects to record a pre-tax charge of approximately $8 million to $10 million in the fourth quarter 2008 related to the closure of the business.
It will sell off its mortgage financing business.
"The story of Jim Walter Homes began as World War II ended and soldiers came home to pursue the American Dream. Regrettably, it ends at a time when the fundamentals of the homebuilding industry have deteriorated in ways never seen before," said Walter Industries chairman Michael T. Tokarz in a press release.
Jim Walter founded Jim Walter Homes in Tampa, Fla., November 1946, when he used $395 in savings to buy and sell his first "shell" home, for a profit of $300.
The company had closed half of its sales centers last year. The shutdown means 230 people will lose their jobs.
The company currently has 150 homes under contract in the midst of construction and says those obligations will be fulfilled.
The shutdown comes after other notable builders declared bankruptcy, including Kimball Hill Homes and Village Homes.