{"id":8216,"date":"2010-01-11T15:45:22","date_gmt":"2010-01-11T15:45:22","guid":{"rendered":"https:\/\/zonda-develop.go-vip.net\/prosales\/article\/new-digs_o"},"modified":"2025-06-27T02:22:26","modified_gmt":"2025-06-27T02:22:26","slug":"new-digs_o","status":"publish","type":"post","link":"https:\/\/zonda-develop.go-vip.net\/prosales\/business\/new-digs_o\/","title":{"rendered":"New Digs"},"content":{"rendered":"<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\"><p class=\"wp-block-paragraph\"> You bought the house, you moved in, but now you wonder what to do next. That&#8217;s the task facing some dealers who bought lumberyards and facilities that Stock Building Supply sold or closed after the second-largest U.S. dealer left dozens of markets as part of its reorganization under Chapter 11 bankruptcy.<\/p><p class=\"wp-block-paragraph\"> <\/p><p class=\"wp-block-paragraph\"> By ProSales&#8217; count, Stock facilities in 28 locations across 12 states changed hands this summer and fall. (See map, page 38). A few of the yards reverted to the people who had sold facilities to Stock several years ago and who continued to manage the locations under the Stock name. Other facilities got completely new ownership.<\/p><p class=\"wp-block-paragraph\"> Sometimes, the new dealers found they needed to improve the building and yard, while at other sites, the changes required were more psychological than physical. Some places needed both upgrades.<\/p><p class=\"wp-block-paragraph\"> Last August, Kitzmans finalized a deal to purchase a Stock location in Loves Park, Ill., that included a 12,000-square-foot facility. Soon after, company president Steve Kitzman arranged to blow a hole through the building, creating a drive-thru lane for contractor pick-ups.<\/p><p class=\"wp-block-paragraph\"> &#8220;For us it was a nice, large building, but despite its size, there was no way a customer could pull up to the building easily,&#8221; Kitzman says.<\/p><p class=\"wp-block-paragraph\"> Inside, Kitzman said the building gave one the feel of a being &#8220;a rat in a maze&#8221; thanks to a tangled collection of kitchen vignettes and walls that just &#8220;didn&#8217;t make sense.&#8221; Shoehorned into one corner of the building were retail shelves. If customers wanted to get to those shelves, they had to traverse the maze.<\/p><p class=\"wp-block-paragraph\"> All told, four 40-yard dumpsters were filled with debris ripped out of the building, Kitzman says. Eventually, Kitzmans moved the headquarters of its three-unit operation from a Rockford, Ill., location, now closed and used for storage, to the Loves Park facility.<\/p><p class=\"wp-block-paragraph\"> Because the Stock location was closed for nearly four months before Kitzmans purchased the building, it inherited only four of Stock&#8217;s employees. While Kitzman felt that the quartet he inherited were just going through the motions, he soon learned that some of his own employees were doing the same.<\/p><p class=\"wp-block-paragraph\"> &#8220;I wasn&#8217;t prepared for the human relations changes I encountered,&#8221; Kitzman adds. &#8220;Not only did we need to work on the building, but we needed to instill an entrepreneurial spirit in some of the employees. We work in overdrive, not first gear.&#8221;<\/p><p class=\"wp-block-paragraph\"> Freedom in Connecticut. Speed and recapturing the entrepreneurial spirit Kitzman describes are on Antonio Rossano&#8217;s agenda. &#8220;Nimbleness comes to mind,&#8221; the Connecticut dealer says. &#8220;Being quicker.&#8221;<\/p><p class=\"wp-block-paragraph\"> Rosanno ran the two-unit East Haven Builders Supply for more than 25 years before selling to Stock five years ago. Now he&#8217;s running his own yards again and is part of a major new player in the industry.<\/p><p class=\"wp-block-paragraph\"> In November, BlackEagle Partners LLC, a private equity firm based in Bloomfield Hills, Mich., joined with Dallas-based Building Industry Partners to acquire Stock locations in Connecticut, New York, and Wisconsin. Their acquisition vehicle was a newly formed holding company called US LBM Holdings LLC, whose president and CEO, L.T. Gibson, until August was vice president of Stock&#8217;s North Central U.S. operations.<\/p><\/div> <!--nextpage--><div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\"><p class=\"wp-block-paragraph\"> US LBM said when the deal was announced that, based on its collective 2008 sales, it would rank 15th on the 2009 ProSales 100. That suggests the 13-unit, 500-employee company has total sales of about $250 million.<\/p><p class=\"wp-block-paragraph\"> <\/p><p class=\"wp-block-paragraph\"> <\/p><p class=\"wp-block-paragraph\"> Each state&#8217;s locations will operate as local autonomous businesses, BlackEagle said, under the names Bellevue Builders Supply in New York, East Haven Builders Supply in Connecticut, and Wisconsin Building Supply. Bellevue, like East Haven, used that name before being acquired by Stock about five years ago.<\/p><p class=\"wp-block-paragraph\"> Rossano said he thinks the name change back to East Haven Builders Supply will help, given what he calls a fragmented Connecticut market full of smaller, regional firms.<\/p><p class=\"wp-block-paragraph\"> &#8220;In this type of a market, being perceived as a small player is sort of an advantage,&#8221; says Rossano, who is serving as president of East Haven while overseeing more than 100 associates.<\/p><p class=\"wp-block-paragraph\"> Corporate mandates, such as limiting the amount of hours that employees put in, is an example of one of the Stock agendas that hampered business, Rossano says. He plans to do just the opposite.<\/p><p class=\"wp-block-paragraph\"> &#8220;I can&#8217;t look at the clock and wonder why a guy worked three hours overtime. I can&#8217;t worry about that,&#8221; he says. &#8220;It got overbearing and Stock was looking in the wrong places.&#8221;<\/p><p class=\"wp-block-paragraph\"> Today, there are no corporate &#8220;radar screens,&#8221; Rossano says. &#8220;It&#8217;s only my view.&#8221;<\/p><p class=\"wp-block-paragraph\"> <\/p><p class=\"wp-block-paragraph\"> Rossano says his locations in Newtown and East Haven can cover all of Connecticut and Westchester County in New York State. His service area pits him against a number of strong players, including Interstate + Lakeland Lumber and Ridgefield Supply.<\/p><p class=\"wp-block-paragraph\"> The ability to focus on customers is one of the largest benefits of the change, according to Bill Imig, president of Wisconsin Building Supply. &#8220;We got so wrapped up in so many corporate initiatives that it impacted our ability to help customers,&#8221; he says.<\/p><p class=\"wp-block-paragraph\"> Imig, a 30-year veteran of Stock, oversees seven yards along with a truss plant, panel plant, and door shop in his newer role as division president.<\/p><p class=\"wp-block-paragraph\"> At Schenectady, N.Y.-based Bellevue, president Greg Gaskell is tweaking the product mix so it&#8217;s more in touch with the needs of the local market as opposed to a national program, which was the case with the yards when Stock owned them.<\/p><p class=\"wp-block-paragraph\"> &#8220;I don&#8217;t think we are reinventing the wheel here,&#8221; say Gaskell, a 20-year industry veteran who worked at Wickes and Bradco before Stock. Bellevue remains a strong name in New York&#8217;s capital region. The business had been a family-owned one, with roots in the area tracing back to 1937 before it was sold to Stock five years ago. According to Gaskell, at one point, the Schenectady yard was the single largest yard in the country.<\/p><p class=\"wp-block-paragraph\"> <strong>Back Home.<\/strong> The Johnson family, owner of Home Lumber in Bishop, Calif., in the Sierra Mountains, sold the three-unit company to Stock in 2006. Brent Johnson had a three-year agreement to continue working for the dealer, primarily at the former San Bernardino locations. But that yard closed in November 2008 and Johnson heard this spring that the former Bishop location was on the chopping block too.<\/p><p class=\"wp-block-paragraph\"> After months of talks, the location remained open but once again it&#8217;s under the Home Lumber banner. Given its &#8220;green&#8221; locale (Bishop is located near Yosemite and several other parks), not to mention the green movement, Johnson redesigned the Home Lumber logo around Stock&#8217;s dark green logo.<\/p><p class=\"wp-block-paragraph\"> The real challenge for Johnson, though, was getting reacquainted with day-to-day routines that were once taken care of at Stock headquarters in Raleigh, N.C. Centralized procedures from accounting to human resources that had been part of the routine were gone.<\/p><p class=\"wp-block-paragraph\"> &#8220;I was able to get help from past employees,&#8221; Johnson says. &#8220;I had to restart everything from scratch.&#8221;<\/p><p class=\"wp-block-paragraph\"> That meant taking the reins back in the accounts payables, accounts receivables, credit, and accounting departments. It also meant setting up a new computer system and software.<\/p><p class=\"wp-block-paragraph\"> Thankfully, Johnson had the eight remaining employees also make the transition from Stock to Home Lumber. &#8220;The quality of the people is great. They know how to run their store,&#8221; Johnson says.<\/p><p class=\"wp-block-paragraph\"> While Stock broke many of its leases with the former owners of its yards, that&#8217;s not the case with the Bishop location, which is owned by the Los Angeles Department of Water and Power. Although the dealers ProSales spoke with did not disclose the prices they paid for former Stock locations, Johnson says that once he heard Stock was about to close Bishop, he received &#8220;one heck of a deal. They just wanted to close it.&#8221;<\/p><p class=\"wp-block-paragraph\"> The real challenge for Johnson is &#8220;having confidence the market will be strong again,&#8221; he says. &#8220;You have to think there is a bright light in the industry that people can start walking to.&#8221;<\/p><p class=\"wp-block-paragraph\"> Opportunity Knocks. While Johnson saved his former business and the jobs of his former employees, dealers have pursued buying former Stock locations for a variety of reasons. In some cases, it just made solid business sense.<\/p><p class=\"wp-block-paragraph\"> That was particularly the case for Stock locations in the Carolinas. Home Builders Supply of Greenville, N.C., picked up a yard in Wilson, one county over. Professional Builders Supply of Morrisville, N.C., bought a former Stock yard in Wilmington and set up its first branch. And Build A House LLC in Greenville, S.C., bought Stock&#8217;s commercial door operation in Greer, while Commonwealth Door &#038; Hardware of Salem, Va., took Stock&#8217;s Charleston, S.C., commercial door operation.<\/p><p class=\"wp-block-paragraph\"> Elsewhere, the deals were just as enticing. When Lavalley Lumber of Sanford, Maine, bought two former Stock locations and a kitchen design facility in Massachusetts, Lavalley CEO Don Collins said the acquisition was a &#8220;natural fit&#8221; that could not be passed up. &#8220;It was the quality of the people, the quality of the customer base,&#8221; Collins told ProSales.<\/p><p class=\"wp-block-paragraph\"> Even ProBuild got into the action when it took over a Stock location in Kalispell, Mont., giving ProBuild its first facility in the far northwest region of that state.<\/p><p class=\"wp-block-paragraph\"> &#8220;These were not only some of Stock&#8217;s best markets in the country but some of the best teams they had,&#8221; Gibson says of the operations in three states that US LBM now runs. &#8220;These guys were just too good to let go.&#8221;<\/p><p class=\"wp-block-paragraph\"> Kitzmans&#8217; Loves Park location replaces a yard that was practically falling apart yet would have cost $500,000 to raze and get the ground prepped to code. But there was another big reason for moving to Loves Park. &#8220;In the local region, this is one of the last facilities of its kind,&#8221; says Kitzman. &#8220;If I didn&#8217;t buy it, someone else would. How in the world could I sit by and let this go?&#8221;<\/p><p class=\"wp-block-paragraph\"> Kitzman views the deal as worth the effort. But if you want to follow him, he has some advice: &#8220;Think about how hard this is going to be, and multiply it by a factor of two or three.&#8221;<\/p><\/div> ","protected":false},"excerpt":{"rendered":"<p>You bought the house, you moved in, but now you wonder what to do next. That&#8217;s the task facing some dealers who bought lumberyards and facilities that Stock Building Supply sold or closed after the second-largest U.S. dealer left dozens of markets as part of its reorganization under Chapter 11 bankruptcy. By ProSales&#8217; count, Stock [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":8217,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"scheduledNewsletterDates":[],"_scheduled_newsletter_id":0,"footnotes":"","jetpack_post_was_ever_published":false,"zonda_content_type_url_append":"_o","zonda_dfp_zone":"","zonda_exclude_recommended_contents":false,"zonda_exclude_most_popular":false,"zonda_exclude_tagged_results":false,"zonda_eyebrow":"","zonda_last_newsletter_date":"2099-12-31T23:59:59.999-05:00","zonda_original_url":"","zonda_pdf_version":0,"zonda_print_headline":"New Digs","zonda_promo_abstract":"You bought the house, you moved in, but now you wonder what to do next.","zonda_promo_headline":"","zonda_promo_image":0,"zonda_subheadline":"Dealers who took over former Stock Building Supply locations are changing how business gets done."},"tags":[],"news_item_type":[780],"section_9":[11548],"subject":[30,32,29,106,128],"organization":[295,80911,651],"award":[],"person":[],"product_type_9":[],"content-group":[],"event":[],"location":[540,155,13073],"state":[126,1063],"brand":[],"jlc-category":[],"year_tax":[],"sponsor":[],"coauthors":[6662],"class_list":["post-8216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","news_item_type-feature","section_9-business","subject-business","subject-lumberyards","subject-management","subject-operations","subject-residential-projects","organization-builders-supply","organization-home-lumber-of-new-haven","organization-stock-building-supply","location-charleston-north-charleston-sc","location-los-angeles-long-beach-santa-ana-ca","location-new-haven-milford-ct","state-california","state-connecticut"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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