BMHC in discussions with lenders
Building Materials Holding Corp. (BMHC), the industry’s 4th largest pro dealer, has announced that it has entered discussions with its lenders to lift certain conditions to borrowing under its credit facility. The San Francisco-based company is also negotiating to permanently amend its credit agreement to better reflect market conditions.
BMHC’s existing credit facility includes a revolver of $500 million, a term loan of $350 million and an option to increase the credit facility by an aggregate amount of $250 million. As of Dec. 31, 2007, there were no borrowings under the revolver, and $346 million was outstanding under the term loan.
In a press release issued Monday, the company said it is currently compiling its financial statements for the fourth quarter of 2007 and the entire year. In 2006, BMHC reported $3.24 billion in total sales. The company is made up of two subsidiaries: BMC West and SelectBuild.
Wal-Mart implements packaging ‘scorecard’
Bentonville Ark.-based Wal-Mart Stores will begin using a new packaging “scorecard” for suppliers today in an effort to track suppliers’ “progress towards using sustainable packaging.”
The program was first introduced by the Clinton Global Initiative in 2006 and was put through a trial phase last year. The company said it hopes the new scorecard will help it reach a goal of using 5 percent less packaging by 2013.
“The packaging scorecard helps everyone make better decisions that are good for business, our customers and the environment,” explained Matt Kistler, senior vp-sustainability at Wal-Mart. “It’s important to us that our suppliers see the intrinsic value behind sustainability, both for their business and the environment.”
As of Jan. 30, the company had more than 97,000 items entered into its scorecard by more than 6,000 vendors.
Home Depot lays off 10 percent of staff at headquarters
Home Depot has announced layoffs of about 500 employees at its Atlanta-based headquarters — 10 percent of the staff there, according to the company.
The reductions were from departments “across the organization and touching every functional area,” Home Depot spokesperson Ron DeFeo told HCN.
“We’re clearly operating in a tough business environment,” DeFeo said. “We started talking about that in 2007, and we were very honest in saying we expected to see this continuing into 2008 (in recent financial statements). We have a firm commitment in investing in our stores. In order to do that, we need to make some changes.”
The layoffs were only at the company’s headquarters and do not affect distribution centers or stores. The laid-off workers will receive pay for 60 days, the company said.