Distribution factors prompt McCoy’s to exit Arkansas and Mississippi.
McCoy’s Building Supply announced it plans to sell four of its locations to Central Network Retail Group (CNRG).
The stores are located in Greenville, Vicksburg, and Laurel, Miss. along with a location in Searcy, Ark.
Once the transaction is completed, the stores will be operated by CNRG under the Home Hardware Center banner.
The financial terms of the sale were not disclosed. McCoy’s said it expects the deal to be finalized by Aug. 1.
“We have learned in recent years the importance of managing our own distribution for core products, and we have made big investments in growing our distribution capabilities to serve as many stores as possible,” McCoy’s President and CEO Meagan McCoy Jones said in a statement issued by the Texas-based prodealer.
“These four stores are outside the reach of our distribution network, and as we plan our growth, Mississippi and Arkansas are not in our target geography,” Jones explained. “The best opportunity for these stores is with an owner who is investing in this geography and in whom we trust to operate and lead well. We have trust and confidence in the CNRG team, and I’m thankful for their work and sensitivity as we’ve planned this transaction.”
CNRG, a wholly-owned subsidiary of Orgill, is a multi-format, multi-brand retailer operating 140 hardware stores, home centers, and lumberyards in 16 states.
“We are excited to have the opportunity to add four McCoy’s stores to Home Hardware Center (HHC),” said John Sieggreen, president of CNRG.
“HHC was our first CNRG brand and these stores will fit nicely into their current footprint. McCoy’s has a long-standing reputation for quality customer service and solid operating disciplines; we are honored that the McCoy’s team felt that CNRG would be a good fit for these stores,” Sieggreen added.
McCoy’s also announced that it is being forced to close its Corisanca, Texas location due to the expansion of a highway project by the Texas Department of Transportation.
The Corsicana market will continue to be served by surrounding McCoy’s locations, and all employees in Corsicana have been offered jobs in other locations, the company said.
“McCoy’s has no plans to close or sell any other stores or facilities,” Jones said. “We have absolutely no plans to sell the company. I’m proud of our company, I’m proud of our team, and I will do all I can to help us succeed and serve customers who count on us every day.”
McCoy’s Building Supply is based in San Marcos, Texas. Following this series of moves, the company will operate 85 stores, 3 distribution centers, and 2 millwork facilities in Texas, Oklahoma, and New Mexico.