Handy acquisition talks continue
Houston-based Handy Hardware Wholesale issued a warehouse and office update to co-op members yesterday, pointing to improved fill rates and continuing talks on a possible acquisition, among other things.
Handy filed for bankruptcy protection in January.
The April 11 letter from the board of directors highlighted four items: truck fleet consolidation that is expected to boost efficiency, consolidation of Houston warehouse functions into a single day shift, the elimination of the director of sales position held by Lynn Bradley as reported here earlier, and the existence of ongoing talks with parties interested in acquiring Handy.
“As required by the bankruptcy process, due diligence and discussions are continuing with the two interested parties that have expressed an interest in acquiring Handy. Both parties have clearly expressed their desire to continue the legacy of Handy if they were to acquire the business,” according to the letter. “More detailed information will be presented to our members as it becomes available.”
The company added that service levels (fill rates) for March 2013 averaged 88% and are approaching the 90% level this week, with yesterday’s service level at 89%.
The truck fleet consolidation will elevate Averitt Express as the single carrier partner. The co-op expects to realize annual savings of more than $1.5 million as a result of the bankruptcy court-approved termination of a third-party trucking contract.
Regarding the elimination of the director position, the co-op thanked Lynn Bradley for six years of service. Ken Harvey will remain as VP sales for Handy.