Mahre to leave BMHC
Building Materials Holding Corp. (BMHC), the industry’s fourth largest pro dealer, has announced the departure of Michael Mahre, president and CEO of its SelectBuild division. According to a May 1 filing with the Securities and Exchange Commission, Mahre resigned on April 30.
Under the terms of the separation agreement, Mahre will serve as a transitional consultant through Jan. 18, 2009. A non-compete clause expires on that date.
Once the most profitable division at BMHC, SelectBuild has been especially hard hit by the building downturn. In the face of substantial losses in its fourth fiscal quarter, BMHC announced plans last March to downsize its SelectBuild division, which provides construction services to production builders, and integrate some aspects of the operation with BMC West, its LBM distribution arm.
According to the SEC filing, Stanley Wilson will oversee both of BMHC’s operating companies, BMC West and SelectBuild. Wilson was promoted to the position of BMHC president and chief operating officer on Feb. 19, 2008. He reports to Robert Mellor, chairman of the board and CEO.
BlueLinx records $10.6 million loss
Building products distributor BlueLinx Holdings recorded a $10.6 million loss in the first quarter, deeper losses than the $189,000 hit taken by the company in the first quarter last year.
Revenues decreased 25 percent to $716.8 million from $957.1 million for the same period a year ago.
Structural product sales took the biggest hit, with sales down 28.1 percent, while sales of specialty products fell 22.5 percent. Head count reductions in the fourth quarter led to an 8.8 percent decrease in operating expenses, but it wasn’t enough to offset downward pressure from the housing market.
“We remain focused on managing cash flow by tightly managing inventories, receivables and our operating expenses,” said Howard S. Cohen, interim CEO for BlueLinx. “Our company is financially positioned to be able to continue executing throughout this housing downturn.”
Earlier this year, former BlueLinx CEO Steve Macadam announced his resignation, with plans to accept a position CEO with EnPro Industries, a Charlotte, N.C.-based provider of engineered industrial products for worldwide manufacturing industries.
BlueLinx ranked first on the Home Channel News Top 150 Distributors Scoreboard in 2007.
DWR will open New York flagship
Design Within Reach (DWR), the San Francisco-based specialty retailer, has announced plans to open a new flagship store in Manhattan.
The new 4,000-square-foot Studio storefront will be opened in Soho and is planned to feature high ceilings and an open floor plan.
“Our new flagship Studio places DWR in the heart of the world-renowned SoHo shopping district,” said Ray Brunner, CEO of Design Within Reach. “[The location] will provide an improved retail layout with a greater selection of our products on display and much higher visibility and foot traffic.”
The new store will feature design based around New York City subway maps, as well as new fixtures and wall graphics for the chain.
The company will close its existing Soho Studio on May 22 in anticipation of the new launch. Most notably, DWR said it will repurpose that 3,500-square-foot space for a new retail concept to be launched in September 2008.