Foxworth-Galbraith Lumber Co. will close facilities in San Antonio and Sulphur Springs, Texas; Tucson, Payson and Lakeside, Ariz.; and Pueblo, Colo., the company said in a Dec. 3 memo to employees. "While these changes are painful, they are necessary to align our cost structure with our revenue and demand from our local markets," executives for America's 12th-biggest LBM operation wrote.

FoxGal will exit the San Antonio and Tucson markets, the Dallas-based company said. According to its website, FoxGal has a lumberyard and manufacturing plant in San Antonio, while in Tucson it operates under the Arizona Sash & Door label. The San Antonio shutodwn will be completed in mid-January while the Tucson business will close by the end of January, FoxGal said. The company's Gilbert, Ariz., yard will continue to serve select customers in Tucson.

The operations in Sulphur Springs, Pueblo, Payson and Lakeside all were to conduct their last business today, with operational shutdown expected to be completed by Dec. 31. Sulphur Springs customers will be served by FoxGal's Winnsboro, Texas, yard.

"Every one of these decisions has been made after very thorough consideration to the short-term and long-term consequences of each," said the FoxGal memo to associates from company president/CEO Jimmy Galbraith III and SVP of operations Daniel Brunson. "You have probably seen and/or heard of similar consolidations and closures from a number of our competitors as they also attempt to align their cost with current business levels. We are confident that these tough, although necessary, decisions will better position us for the future. Thank you for your support and hard work during these very challenging economic times."

FoxGal ranked No. 12 on this year's ProSales 100, with sales in 2008 of $373 million, down 30% from the previous year.

Texas-based dealers have been among the most hard-hit operations in the United States. Builders FirstSource, No. 8 on the ProSales 100, has racked up $68 million in net losses through the first nine months of this year, and No. 14 Bison Building Materials is in Chapter 11 bankruptcy.