Kimball Hill leaving Florida, laying off 75

Kimball Hill Inc. confirmed Wednesday it intends to leave the Florida housing market and cut 75 jobs across the country, including some at its Rolling Meadows headquarters.

All homes under construction in Florida will be completed by the end of the year, the company said.

However, the company, which has warned that it may face bankruptcy, sounded upbeat on Wednesday.

"We had a very good weekend last weekend," said Kenneth Love, chief executive officer of Kimball Hill, referring to sales in the Chicago market.

Love and Chief Restructuring Officer Andrew Hede of New York-based turnaround firm Alvarez & Marsal said they are negotiating with creditors and continuing to build new homes while the company rides out the housing market downturn.

"We have a company, both with a great heritage and a great future," Love said. "We have a management team that is undaunted."

Earlier this month, the developer that built most of the homes in Rolling Meadows filed a Securities and Exchange Commission report saying it may declare bankruptcy if it cannot meet the obligations of its $500 million credit line.

Kimball Hill, which has fewer than 100 homes under construction in Florida, said it will focus its resources in its remaining markets in Illinois, Texas, Nevada and California.

A key suburban homebuilder in the West and Northwest suburbs of Chicago since 1939, the family-controlled firm has an extended line of credit until March 14.

Kimball Hill has several projects under way in the Chicago suburbs, including Sugar Grove, where its Settlers Ridge had planned to develop 2,470 homes on 1,300 acres. Just 150 to 200 permits have been applied for, according to Sugar Grove officials.

The company has been led since 1969 by area philanthropist and Harper College Trustee David K. Hill, who gave up his role as chief executive officer last year and still serves as chairman of its board. He is the son of founder Kimball Hill.

Kimball Hill isn't alone among homebuilders in the area suffering from a housing depression and credit woes. Earlier this month South Barrington-based Kennedy Homes laid off 20 of its 32 employees and suspended new home building. Warrenville-based Neumann Homes sought Chapter 11 protection in the fall.