Summit Electric Supply secures additional financing
Summit Electric Supply, a wholesale distributor of electrical supplies used in commercial construction, has secured a $60 million asset-based loan from Bank of America. The Albuquerque, N.M.-based company will use the credit facility to refinance existing debt and provide for working capital needs, according to an announcement made by Bank of America.
“We are confident in management’s ability to successfully grow the business despite volatility in the construction business,” said Joyce White, president, Bank of America Business Capital.
Summit Electric operates 20 distribution facilities in Arizona, Florida, Louisiana, New Mexico and Texas. It offers a full range of electrical products and systems, including lamps and lighting, conduits and fittings, wire and cables, tools and datacom. The company sells primarily to licensed contractors and end users in industrial markets as well as the commercial construction industry.
Restoration Hardware reports lower holiday sales
In its annual report on the holiday sales period, specialty retailer Restoration Hardware said net revenue took a small hit, falling 1 percent to $171.5 million from $173.2 million in the same nine-week period last year.
During the period, the company’s catalog page count declined 17 percent. Additionally, the company said it executed a “commensurate reduction in the number of books mailed … reflecting management’s long-term strategy to reduce costs and improve productivity.”
“The environment for home furnishings retailers remained challenging during the holiday period,” said Gary Friedman, president and CEO of Restoration Hardware. “The seasonal sales we anticipated in gift items during the final days of holiday did not materialize as expected, contributing to softness that was concentrated in our decorative accessories business.”
The Corte Madera, Calif.-based retailer has been the target of a takeover attempt by Sears Holdings. Sears Holdings has offered $6.75 per share for the mid-to-high-end retailer, a higher bid than the $6.70 per share offer from private equity firm Catterton Partners. Sears currently owns a 13.7 percent stake in Restoration Hardware.
Newell Rubbermaid plans distribution facility
Housewares maker Newell Rubbermaid has announced plans to build a new 800,000-square-foot distribution facility in Atlanta.
The move is part of a company strategy to “convert many single-brand distribution centers to select multi-brand distribution centers that are located more centrally,” the company said in a statement.
The new facility will employ approximately 300 people.
“This new distribution center further supports our global objective to achieve operational excellence and best total cost across our strong portfolio of brands,” said Mark Ketchum, president and CEO of Newell Rubbermaid. “We are continuing to make solid progress in eliminating redundancies and reducing our operational footprint.”
The company has reduced its global distribution facilities from 96 facilities to fewer than 80, with a goal of decreasing to approximately 50 over the next two years.