BlueLinx today announced the launch of a strategic review aimed at realigning its headquarters and reviewing the role played by five of its distribution centers.
In a statement, the Atlanta-based distributor said it will consider the sale or closure of one or more of its distribution centers and that it expects the entire process to cost between $11.5 million and $12.5 million. The statement also hints strategic partnerships could also be on the table.
BlueLinx didn't answer ProSales' call for comment, but the statement notes that more details will be included in the company's second-quarter financial results to be released next month.
The announcement is the latest effort by the struggling company to improve its bottom line which last saw a profit in 2006 of $15.8 million. The following year, the company produced a $28 million loss.
In May, BlueLinx announced the departure of president and CEO George Judd, who'd been at the post since October 2008. That followed the company's announcement of its first-quarter financial results, which reported a $12.6 million net loss—compared to an $11 million loss a year earlier—on sales of $503.2 million, up 10.8% from the first quarter of 2012.
BlueLinx will continue to fully operate all of its distribution centers during the review, which will conclude during the third quarter of the company's current fiscal year.
The company says the reorganization should save between $9 million and $10 million annually, including payroll costs; that number doesn't include the possible reorganization of its distribution centers. The move should generate up to $27 million in operating cash, which the company says will be reinvested in its other markets and used to pay down debt.