L&W Supply, the distribution arm of USG, will close eight locations before the end of the current quarter, the company reported to the Securities and Exchange Commission today. The Chicago-based company also told the SEC it will close its Nevada custom door and frames business, and it reported to ProSales that it will open two other facilities before Sept. 30.

The company will close locations under the Building Specialties name in Winder and Cartersville, Ga., Montgomery, N.Y., and Dayton, Ohio. It also plans to close Wabash Valley Supply in Terre Haute, Ind., Builders Supply in Green Bay, Wis., Arch City Drywall Supply in Fenton, Mo., and Alabama Drywall Supply in Decatur, Ala.

L&W will open locations in Joplin, Mo., and Birmingham, Ala., but did not reveal what names the operations would open under. Both areas are undergoing a rebuilding following devastating tornadoes last spring.

"During this extended economic recession, we have implemented many new intiatives and have taken difficult, but necessary actions to restore profitable operations within L&W Supply," said president and CEO Brendan Deely in an e-mail to ProSales. "We are a new organization with a heightened focus on serving our customers."

According to the SEC filing, L&W will incur charges of about $7 million to $8 million during current and future quarters due to the closures. The charges include $5 million to $6 million related to equipment and lease terms, approximately $1 million for termination benefits, and approximately $1 million for associated costs.

L&W Supply is ranked No. 6 on the latest ProSales 100 listing with sales of $1.05 billion during 2010. It had 163 facilities as of Jan. 1. During the last quarter, the division improved its operating loss by $8 million to finish at $14 million, compared with the same period a year ago, even though sales slipped 4.3% to $270 million.