BMHC pulls out from Florida
BMHC, the San Francisco-based pro dealer, has announced its decision to withdraw from the state of Florida due to the prolonged housing slump there. BMHC serves production builders in Florida through its SelectBuild division, which offers shell construction, concrete services, and truss and stair manufacturing.
Approximately 140 employees will be affected, according to BMHC. SelectBuild will fulfill all its contractual obligations as it closes down its operations over the next four months, the company said.
“The Florida market has weakened considerably, and we anticipate it will be some time before improvement is seen,” said Stanley Wilson, BMHC’s president and chief operating officer, in a prepared statement. He added that housing starts have dropped from a peak of 265,000 in 2005 to an estimated 61,000 in 2008.
SelectBuild operates from eight locations in Florida, according to BMHC’s 2008 annual report. It accounts for approximately 8 percent of BMHC’s annual revenues. There are no BMC West locations in Florida.
BMHC is currently in talks with its lenders regarding a failure to meet the covenants of its credit facility. Ranked 5th on the ProDealer Top 350 for 2007, BMHC’s sales dropped 28.7 percent last year, from $3.20 billion to $2.28 billion.