At BlueLinx, restructuring is under way
Atlanta-based building products distributor BlueLinx Holdings says it will take a hard look at five of its distribution centers with a view toward selling or possibly closing some of them.
The action, which also includes a "realignment of headquarters resources," follows the departure of CEO George Judd, who left the company last month. A search for his successor is ongoing.
In a statement released late Tuesday, the company said its strategic restructuring includes "the realignment of headquarters resources and a strategic review of five distribution centers."
Without identifying them, the company said it will continue to fully operate the distribution centers in question during the process, which is expected to be completed during the third quarter. In total, the company has about 55 distribution centers.
"The actions we announced today better focus our business and demonstrate our strong commitment to returning BlueLinx to profitability in the current operating environment, while continuing to invest in the areas of the country that we believe will provide the best return for our stockholders, business partners and employees," said Howard Cohen, executive chairman.
In its most recent quarter, the company posted a loss of $12.6 million.
In connection with the restructuring plan and the change in the company’s executive leadership, the company expects to recognize aggregate pre-tax restructuring charges in its current fiscal year in the range of $11.5 million to $12.5 million.
Excluding the five distribution centers, the company expects these actions to generate annual payroll related and other cost savings in the range of $9 million to $10 million.
Upon completion, the company expects to generate approximately $25 million to $27 million in operating cash, a portion of which will be reinvested in its other markets, with the balance used to pay down its long-term debt, the company said.
Lumber Liquidators responds to formaldehyde accusations
Lumber Liquidators Holdings has issued a formal response to HCN’s inquiries regarding recent accusations that its products contain illegal levels of formaldehyde:
"We stand by our products and take very seriously any questions or concerns about our quality. Our comprehensive quality control system is designed to ensure Lumber Liquidators’ customers receive the best and safest flooring possible. This is a promise we guarantee. We have strict product specifications and more than 40 quality control associates deployed across three continents to ensure compliance. In addition, we regularly confirm our own product compliance utilizing recognized independent laboratories that test against the stringent regulatory standards. The result is a product we are confident to put in our own homes."
Eco Building Products announces mainstream status to shareholders
Steve Conboy, President and CEO of Eco Building Products, Inc., has issued a letter to the company’s shareholders announcing the manufacturer’s entry into the mainstream market.
"Moving forward with the company’s newly focused supply-only operation; a lean, reorganized and restructured company has effectively transitioned from its previous business plan," said Conboy. "Gone are the days of turn-key, labor-driven red buildings; we are now well-positioned to support the supply chain side of the industry by way of coating services and special orders sales."
The company’s flagship product, Eco Red Shield protected lumber, is cited for its role in bringing the Eco Building Products name to the big-box retail arena.
Conboy also announced the addition of Disaster Break Coating to its line of Eco Disaster Products, which adds additional mold and fire protection to raw lumber.
Eco Building Products has established a relationship with the as-yet unnamed large national retailer that includes in-store sales, direct to distribution sales and special order sales. Eco’s Fire Break and Christmas Tree Protection products will also be available on the retailer’s web site.
Additionally, Conboy announced that the company will be launching several special order and direct to store sales pilot programs in the Northeast and Southern California.
According to the company, Eco protected lumber is positioning itself to be the industry standard, particularly in fire and mold-prone regions.