Builders FirstSource to leave New Jersey
Builders FirstSource, one of the industry’s largest LBM chains, has decided to exit New Jersey. The Dallas-based pro dealer operates a distribution yard, three showrooms and a manufacturing facility. Its New Jersey locations are in the cities of East Brunswick, East Hanover, Lanoka Harbor, Maple Shade, Monroe Township and South Brunswick.
“These difficult and unprecedented economic times forced us to make very hard decisions to maintain the company’s financial health,” said Builders FirstSource CEO Floyd Sherman in a filing with the Securities and Exchange Commission. “We do not see enough long-term potential to support continuing our operations in New Jersey. With the continued difficult economic conditions, we decided to exit this market now, rather than continue our efforts with the probability of exiting the market at a later date.”
No details were given on the timeline of closing down the New Jersey locations. According to the SEC filing, the closures would save the company an estimated $5 to $7 million in cash over the next two years.
After exiting New Jersey, Builder FirstSource will operate in 12 states, primarily in the southern and eastern United States. The company reported a $45.9 million loss during its second fiscal quarter, which ended on June 30, 2008. Sales for the quarter decreased 34 percent.
Builders FirstSource will release its third-quarter results after the market closes on Oct. 23.