California LBM chain closes
Moss Lumber & Hardware Co., a Northern California chain of four lumberyards, filed for Chapter 7 bankruptcy and closed suddenly on May 10, according to an article in the Redding Record Searchlight.
The family-owned operation, founded in 1946, had locations in Redding, Red Bluff, Chico and Fresno.
During the housing boom, the company employed approximately 200 people, the newspaper reported. Its current CEO, Greg Moss, was the third generation of the Moss family to operate the business.
Feds looking at new foreclosure solution
In an attempt to shore up the housing market and also provide more affordable rentals, the federal government is considering the idea of turning some of the 250,000 foreclosed homes it owns into rental units. On Aug. 10, the U.S. Department of Housing and Urban Development (HUD) announced it was seeking public input on “new options” for selling single-family homes owned by Freddie Mac and Fannie Mae.
“As we continue moving forward on housing finance reform, it’s critical that we support the process of repair and recovery in the housing market," said Treasury Secretary Tim Geithner. "Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets, and support neighborhood and home price stability."
Officials from the Federal Housing Finance Agency, which oversees Freddie Mac and Fannie Mae, said they would accept ideas in a “request for information process” through Sept. 15. A more formal request for proposals from interested investors is expected to follow.
Lyman Lumber files for Chapter 11
Lyman Lumber, a nine-unit LBM chain based in Excelsior, Minn., has signed a letter of intent to sell its operations to SP Asset Management, according to an article in the Minneapolis-St. Paul Business Journal.The 114-year-old company also plans to file for Chapter 11 bankruptcy, the article said.
SP Asset Management is an affiliate of New York-based Steel Partners Holdings, a diversified holding company headed by activist investor Warren Lichtenstein.
"We are very excited about the prospect of working with a strong and credible financial partner. The sale would allow Lyman to continue to provide market-leading service to our customers," Lyman CEO Jim Hurd told the newspaper.
The sale is subject to bankruptcy court approval, the statement said. The company hopes to use bankruptcy protection to restructure debt obligations and shed non-performing assets, such as its land holdings and construction-lending portfolio.
No. 22 on HCN’s Pro Dealer Scoreboard, Lyman Lumber ended 2010 with $152.3 million in sales.