Building Materials Holding Corp. (BMHC), America's fifth-biggest lumber and building materials dealer, announced today it will close all of its operations in northern Nevada and shut facilities in Oregon, California, Texas, Colorado, and Arizona. Roughly 260 workers are affected.

The northern Nevada operations include facilities in Reno and Sparks. In Oregon, BMHC will close an operation in Sherwood and serve the greater Portland market from nearby Vancouver, Wash. In California, BMHC will consolidate the operations at its Marysville facility into its Modesto yard. "Other operational consolidations" will take place in Texas, Colorado, and Arizona, BMHC's announcement. It didn't elaborate.

"The unprecedented national economic and local market challenges require that we continue to realign costs with current market conditions," Robert E. Mellor, BMHC's chairman and chief executive officer, said in a statement. "With the exception of the Reno area, where we will be exiting the market, we will continue to serve our customers with our full range of products and services--including framing, lumber, millwork and trusses --through nearby facilities. These actions will enable us to significantly reduce our expenses, to share key personnel and to achieve higher utilization of our facilities and equipment."

BMHC ranks No. 5 on the 2008 ProSales 100, with sales of $2.29 billion in 2007, but it has been among the worst-hit LBM operations in this current housing crisis because it relies much more than most dealers on business from production builders. On Nov. 6, BMHC reported a $45.2 million net loss for the third quarter as sales fell 39% to $364 million. That was a swing from the net income of $4.2 million reported in last year's third quarter, when sales totaled $594 million. The dealer has also dramatically scaled back its construction services operations, pulling out of Florida altogether earlier this year, while consolidating and closing numerous distribution locations.

During 2008, the company also merged its SelectBuild and BMC West units. On Jan. 1, it officially closed its San Francisco headquarters and change its corporate headquarters address to Boise, Idaho.