Lloyd Lumber will close by Dec. 31 after 91 years of service to the Nampa, Idaho, area, the company's operations manager told ProSales today.
"We've had three years of unprofitability," Scott Jacobsen said. "By closing down now, we can assure that all our vendors are paid in full."
A weak economy and an uncooperative lender appear to be the prime causes behind the demise of the lumberyard, which was founded in 1919. Building permit issuances in the Boise area, which includes Nampa, have shrunk nearly 79% between 2005 and this year, according to Hanley Wood Market Intelligence.
Lloyd Lumber's owner, Bob Jacobsen, had been trying to free up operating capital by selling Lloyd's retail-oriented facility in downtown Nampa and consolidate operations at its distribution facility, but "the timing didn't work out," the Idaho Statesmanreported today.
At its peak, Lloyd's revenues were about $38 million and it employed almost 150 people. This year its revenues will be about $8 million and the company has 35 workers, some of whom have been with the company for 30 years.
"So far, there has not been any bitterness," Bob Jacobsen told the Statesman. "They understand the situation. They knew that everybody in our economy is dealing with the adversity of it."