Builders FirstSource to leave New Jersey
Builders FirstSource, one of the industry’s largest LBM chains, has decided to exit New Jersey. The Dallas-based pro dealer operates a distribution yard, three showrooms and a manufacturing facility. Its New Jersey locations are in the cities of East Brunswick, East Hanover, Lanoka Harbor, Maple Shade, Monroe Township and South Brunswick.
“These difficult and unprecedented economic times forced us to make very hard decisions to maintain the company’s financial health,” said Builders FirstSource CEO Floyd Sherman in a filing with the Securities and Exchange Commission. “We do not see enough long-term potential to support continuing our operations in New Jersey. With the continued difficult economic conditions, we decided to exit this market now, rather than continue our efforts with the probability of exiting the market at a later date.”
No details were given on the timeline of closing down the New Jersey locations. According to the SEC filing, the closures would save the company an estimated $5 to $7 million in cash over the next two years.
After exiting New Jersey, Builder FirstSource will operate in 12 states, primarily in the southern and eastern United States. The company reported a $45.9 million loss during its second fiscal quarter, which ended on June 30, 2008. Sales for the quarter decreased 34 percent.
Builders FirstSource will release its third-quarter results after the market closes on Oct. 23.
Former Hechinger, GP exec hired at Viance
Viance, the Charlotte, N.C.-based wood treatment technology provider, has hired Chris Kollwitz as its new director of marketing. He comes to Viance from ELF Wood Products in Atlanta, where he worked as director of sales and marketing for two years.
Kollwitz’s career in the building products industry began at Hechinger, where he worked in store operations and planning from 1985 to 1993 and was involved in the former retailer’s launch of the “Home Project Center” concept.
In 1993, Kollwitz joined Georgia-Pacific as senior marketing manager for its building products businesses. In 2004, he was promoted to national account executive to home improvement retailer Lowe’s, and later worked for BlueLinx after it purchased GP’s distribution business.
Ajoint venture between Rohm and Haas and Chemical Specialties, Viance is a provider of wood treatment technologies and services to improve the performance and durability of wood and wood products.
Stimson Lumber auctions off mill items
Stimson Lumber has auctioned off the inventory of its 125-year-old mill in Bonner, Mo.
The Portland, Ore.-based lumber company closed the mill in July of this year following a “chronic, long-term” shortage of logs in western Montana relative to the high milling capacity in the area.
According to the Missoulian newspaper, goods are being auctioned off of the mill through today, including blades, drill presses and numerous other items. The lumber mill has been up for sale since August, at an asking price of $16 million, according to the report.
Stimson Lumber operates nine manufacturing locations in the United States, in Idaho, Montana, Oregon and Washington.