W.T. Harvey files Chapter 11
W.T. Harvey, once one of Ace Hardware’s largest LBM dealers, has filed Chapter 11, according to an article in the Columbus Ledger Enquirer. The Columbus, Ga.-based chain, which once operated seven locations in Georgia and Alabama, never recovered from the 2008 housing market collapse, according to president and CEO Bailey Gross.
The filing in bankruptcy court of the Middle District of Georgia, also mentioned losing business to a number of competitors entering the market in recent years. Those include 84 Lumber, Pro-Built Supply and Brand Vaughn Lumber, all of which are still operating, according to the article.
The company’s total assets are listed as $2 million as of Dec. 1, with total debts of just under $5.2 million. The top four creditors are Allied Building Stores in Monroe, La.; Ace Hardware in Charlotte, N.C.; Dairyman’s Supply Company in Gadsden, Ala.; and American Lumber in Birmingham, Ala. The amounts owed to those range from $259,322 to $128,145.
W.T. Harvey was founded in 1863 by William Thomas Harvey, who served in the Confederate army during the Civil War. His great grandson, Wilfred “Bubber” Gross Jr., operated the business for 50 years, until he passed away this January. His son Bailey now heads the operation, which has two Georgia locations, near downtown Columbus and Phenix City.
Although some employees have been furloughed, the business hopes to either restructure under Chapter 11 or find a buyer that will keep the operation going locally, according to the Ledger Enquirer.
Sales rise 13.4% at HD Supply
HD Supply reported net sales for the third quarter of fiscal 2012 of $2.1 billion, a 13.4% increase over net sales in the third quarter of fiscal 2011. Operating income for the third fiscal quarter, which ended Oct. 28, 2012, was $114 million compared with $65 million a year ago.
The improvement in operating income reflects sales growth and an approximately 140 basis point decline in operating expenses as a percent of net sales, according to the company. Loss from continuing operations for the third quarter of fiscal 2012 was $53 million, an improvement of $66 million as compared with the third quarter of fiscal 2011.
Another highlight of the quarter, the company said, were net sales and adjusted EBITDA growth in all four of the company’s core businesses: Facilities Maintenance, Waterworks, Power Solutions and White Cap.
“A true measurement of the team’s success is our improved year-over-year performance,” said Joe DeAngelo, CEO of HD Supply. “We’re very pleased that our business has experienced 10 consecutive quarters of continuous growth.”
HD Supply is one of the largest industrial distribution companies in North America. The company operates approximately 630 locations across 46 states and nine Canadian provinces. They provide a broad range of products and services to approximately 440,000 professional customers in the infrastructure and energy, maintenance, repair and improvement, and specialty construction markets.
Lumber mill liquidating flooring division
Clear Lake Lumber, the Spartansburg, Pa., manufacturer of kiln-dried hardwood lumber, is closing its American Made Flooring division and auctioning its inventory of hardwood flooring. Almost 300,000 sq. ft. are on the block, along with the division’s customer list, equipment and display racks.
Clear Lake said it is getting out of the flooring business so it can concentrate on its hardwood lumber manufacturing operation.
Tiger Group’s Remarketing Services is handling the sale, which has already begun online. Bidding will close in rapid succession, live auction style, on Dec. 13, beginning at 10:30 a.m. EST. A preview will be from 9 a.m. to 4 p.m. on Wednesday, Dec. 12.