BMHC to close all SelectBuilds in Fla.

Industrial Distribution staff -- Industrial Distribution, 8/6/2008 12:00:00 PM

Building Materials Holding Corp.will discontinue operations at its wholly-owned subsidiary SelectBuild Florida over the next four months.

A provider of building materials and construction services to professional residential builders and contractors, BMHC made the move to better align costs with current market conditions. 

The action affects approximately 140 employees. SelectBuild intends to complete all construction in progress and fulfill all outstanding contractual obligations

"In light of the challenging homebuilding environment, we recognize the need to realign our business across the country to reflect local conditions," said Stanley Wilson, president and COO. "The closure of the SelectBuild Florida facilities is in direct response to the challenging business environment in Florida. The Florida market has weakened considerably and we anticipate it will be some time before improvement is seen.”

Earlier this year, BMHC closed operations in California and Arizona.

Its most recent earnings statements were also disappointing, and the company admitted recently that a preliminary evaluation of its second-quarter results revealed that it is at risk of violating its financial covenants. 

That means the San Francisco-based building materials distributor could default on its nearly $370 million in loans, giving its lenders the right to demand immediate payment of the debts and cease any further lending.