The U.S. Bankruptcy Court has approved Smitty's Building Supply's reorganization plan, setting the stage for the dealer to emerge from Chapter 11 bankruptcy-law protection from creditors, Smitty's COO told ProSales today.
Smitty's entered Chapter 11 on Jan. 5. The company hopes that with Friday's approval of its reorganization plan, the company can return to normal status by the end of June.
Founded in 1974, Smitty's is based just outside Washington in Alexandria, Va., with a branch in Manassas, Va., and window showrooms in Chantilly, McLean, and Falls Church, Va., as well as Rockville, Md. It ranked No. 57 on the 2009 ProSales 100, with $66.3 million in sales (down from $91.5 million in 2007), virtually all of them to professional builders and remodelers.
While in Chapter 11, Bank of America provided the company with a $10.5 million line of credit, including $3.75 million in post-filing debtor-in-possession financing. Business continued as normal during the reorganization. "With Bank of America's continued support through an exit loan facility, Smitty's is successfully emerging from bankruptcy as a new company that will continue to serve our local community," a local business journal quoted CEO Rick Smith as saying.
ProSales featured Smitty's in a cover story in Feburary 2007. In that story, Smitty's described how it rode the rocket-like growth of home construction in Washington's western suburbs and how it revamped its original Alexandria yard to serve urban infill projects.