Add two more victims to the toll of lumberyards felled by the housing crisis. The two latest institutions to go out of business are Landreth Lumber, based in Bunker Hill, Ill., and Springfield Mill and Lumber in Missouri.
A spokesman for Landreth told ProSales today that its closure was involuntary--the result of Landreth's bank deciding to stop providing credit to the 53-year-old southern Illinois institution. Shuttered were lumberayrd sin Cottage Hills, Bunker Hill, and Jerseyville, Ill., as well as a manufacturing facility in Jacksonville, Ill. Roughly 60 employees lost their jobs.
At its peak, Landreth had annual sales of $33 million, but bad debts involving several customers forced Landreth in March 2007 to seek protection from creditors under Chapter 11 of the federal bankruptcy laws. Landreth emerged from that status in November 2007 and was en route to compiling $10 million in sales this year. Then low sales in January caused Landreth to violate its bank lending covenants. That led the bank to stop dealing with Landreth, forcing it to close it doors on Feb. 18, the LBM operation's spokesman said.
In Missouri, the Springfield News-Leaderreported today that Springfield Mill & Lumber will be going out of business in about a month. Southern Supply Co. has purchased a majority of the LBM operation's inventory and hired more than half of its 20-person workforce, M. Lloyd Wright, owner of Springfield Mill &Lumber, told the newspaper.
The newspaper quoted Wright, 65, as saying declining sales during the past two years forced him to close the company, which was founded in 1868. "We'd have loved to stick around and see what the future brings, but it didn't look like the turnaround would come quick enough," he said.