Builders FirstSource, the Dallas-based pro dealer, revealed in a filing with the Securities and Exchange Commission this morning that it will leave the New Jersey market.
The dealer said it operated a distribution center, manufacturing facility and three cabinet showrooms in the state. While the company did not reveal a timetable for the closings, it said it should have facility closure costs and possible additional asset impairments related to the costs in the fourth quarter of 2008, according to the filing.
Cash savings over the next two years, following the closings, are expected to be between $5 million and $7 million, the company said.
"These difficult and unprecedented economic times forced us to make very hard decisions to maintain the company's financial health," Floyd Sherman, Builders FirstSource CEO, said in the filing. "With the continued difficult economic conditions, we decided to exit this market now, rather than continue our efforts with the probability of exiting the market at a later date. We see challenging times ahead of us, but we will continue our focus on maintaining the financial health of the company during this difficult period."
Builders FirstSource ranked seventh on the 2008 ProSales 100 with 2007 total sales of $1.65 billion. The company operates 65 distribution centers and 61 manufacturing facilities in 12 states.
In July, Builders FirstSource reported that second quarter 2008 sales had dropped nearly 40% to $307.3 million compared to sales of $465.1 million in the second quarter 2007. It has scheduled an Oct. 24 news conference to discuss its third-quarter results.
