National Home Centers Files

Chapter 11 Bankruptcy

National Home Centers, Springdale, Ar., has filed for Chapter 1l bankruptcy protection.

The chain blamed the filing on being unable to reach a deal with its primary lender, CIT Group, which itself is working through Chapter I l.

"We could not reach a resolve," said National c.e.o. Dwain Newman. "It's certainly the company's last choice. It is our mission in life to pay our creditors. but we're frozen."

The chain is currently liquidating its west Little Rock, Ar., home center and phasing out LBM in Bentonville, Ar., to concentrate on flooring, paint, furniture and appliances. The cutbacks will leave National with six home centers and three Floorine Superstores.

Massachusetts' Cowls Gives Up on Milling After 250 Years

Citing competition from high-volume sawmills around the world, W.D. Cowls Inc., Amherst, Ma., closed its sawmill Jan. l. The company will continue to run its retail outlet, Cowls Building Supply, and manage its large timberlands holdings.

"It's just that little tiny mills in western Massachusetts can't compete with Weyerhaeuser and China and plastic lumber," said president Cinda H. Jones. "In the past 30 years, the sawmill was seldom profitable. But it was part of our heritage, and it was our heart and soul. It's really the personality of the family."

Three of the six workers at the mill were laid off at the start of the year. Three others will work at the company's planing mill until August, preparing pine boards that have already been cut. Two years ago, the mill had 15 workers.

Jones is the ninth generation of her family to be involved in the business. The Cowls family has owned timberlands and logged in the region since 1741. Today, the company is headquartered in a farmhouse the family built in 1768. The current mill opened in 1940, after years of using portable mills to cut lumber.

In 1980, when her father, Paul Jones, opened the retail store, 807o of its sales was of lumber cut by the family mill. Today, that figure has dropped to just 20Vo. She said that consumers are also looking for substitute building products, such as plastic and composite decking.

"It doesn't require the maintenance that natural wood requires," said Jones. "When I look at those products, I don't think they look as nice as real wood. But the demand for real wood just isn't there."

BMHC Okayed To Emerge

Building Materials Holding Corp., Boise, Id., received bankruptcy court approval to complete financial restructuring in hopes of emerging from Chapter 1 1 on January 4.

"As a result of this process, we will be in a much stronger financial position, having reduced our outstanding indebtedness to $135 million upon emergence," said chairman and c.e.o. Robert E. Mellor, who under the plan would step down. "In addition, we have streamlined our cost structure significantly and have secured exit financing of $90 million to support our ongoing operations and future growth."

Beacon Grows in Tennessee

Beacon Roofing Supply, Peabody, Ma., has acquired single-unit roofing distributor Lookout Supply Co., Chattanooga, Tn.

Lookout president Steve Persinger will stay on as part of Beacon's regional leadership team.

Pat Murphy, senior v.p. of Beacon's Southeast Region, empha- sized the strategic fit and compatibility of the two companies: "Lookout provides Beacon with an excellent opportunity to enhance our current presence in Tennessee and to enter the Chattanooga market. Equally important is that Lookout shares Beacon's core values of integrity, loyalty and a commitment to its employees and customers."

Bitter Store Owners Sue Ace Investors who own three Ace Hardware "Vision 21" stores in Illinois have filed a lawsuit against the co-op, claiming that the larger stores failed to produce promised profits.

Stores included in the lawsuit are Silvis Ace Hardware, Silvis; Hilltop Ace Hardware, Rock Island, and Village Ace Hardware, Champaign. The first two stores opened in 2006 and closed earlier this year. The phone was recently disconnected at the Champaign store, which opened in 2007.

The plaintiffs allege that Ace Hardware Corp., Oak Brook, I1., induced them to invest millions of dollars to purchase land and construct and stock the new stores-which were designed to compete with larger home improvement stores such as Home Depot, Menards, and Lowe's.

According to the lawsuit, Ace promised that it had tested and proven the concept and the new stores would generate positive cash flows in the first year. The co-op also allegedly told the investors that if they built three or four stores at once and continued with dozens along the Interstate 74 corridor and the QuadCity area, they could make tens of millions of dollars.

The plaintiffs claim they repeatedly notified Ace about the poor performance of their franchises and demanded assistance, but the corporation "turned a deaf ear" and demanded they pay back the money it had advanced to them.

The lawsuit further alleges that at the time Ace was selling franchises to them, it was trying to convert from an owner-cooperative to a privately held corporation with intent to offer public stock.

The plaintiffs argue that Ace was trying to increase sales of both franchises and inventory to enhance the likelihood of a public offering.

In addition to naming Ace Hardware as a defendant, the lawsuit also names two men who sold Ace franchises, as well as several directors and vice presidents of Ace.

Weyerhaeuser Converting to Real Estate Investment Trust

Weyerhaeuser, Federal Way, Wa., announced it will convert to a real estate investment trust (REIT) in the near future, to increase profitability.

"This conversion will position us to be more competitive in our timberlands business," said president and c.e.o. Dan Fulton.

Although a date has not been set, board chairman Chuck Williamson said that "the most likely date would be 2010, based on circumstances as we know them today."

Factors under consideration include the state of the economic recovery, the distribution of earnings and profits required under tax laws for REIT election, and changes in tax policy, including shareholder tax rates.

Conversion to a REIT would result in a special dividend of undistributed profits, most of it in the form of stock. By the beginning of 2010, the company expects earnings and profits to total slightly less than $6 billion.

Lumber Producers Launch New Lobbying Group

American Wood Council has formed a new, national coalition of U.S. wood products manufacturers, to work together on building codes, standards, regulations and green building policy issues.

"We are eager to get to work on behalf of the expanded AWC membership," said AWC's Robert Glowinski. "The new coalition will ensure that wood products manufacturers have a broadly supported, unified, and powerful voice at the table so that we can secure a strong future for the wood products industry in the face of an onslaught of upcoming challenges."

The group, officially launched Jan. 1, already has 47 supporting members and each holds a seat on its oversight board.

Officers are chairman Marc Brinkmeyer, Idaho Forest Group, Coeur d'Alene, Id.; lst vice chairman Joe Patton, The Westervelt Co., Tuscaloosa. Al.: 2nd vice chairman Brian Luoma, Louisiana-Pacific Corp., Nashville, Tn.; immediate past chairman Ray Tennison, Simpson Investment Co., Tacoma, Wa.; lumber rep Adrian Blocker, West Fraser, Inc., Vancouver, B.C.; structural panels rep

Fritz Mason, Georgia-Pacific, Atlanta, Ga.; EWP rep Rob Taylor, Weyerhaeuser Co., Federal Way, Wa.; other products rep Andrew Miller, Stimson Lumber Co., Portland. Or.. and Canadian Wood Council rep Diana Blenkhorn, Maritime Lumber Bureau.

Current membership represents 587o of U.S. lumber production, TlVo of structural panel production,62Vo of engineered wood products, and strong representation from all Canadian wood products.

SFI Tweaks Green Standard

The Sustainable Forestry Initiative program is revising its standard for 20 10, to address growing market interest in products from certified forests.

The revised SFI 2010-2O14 Standard is the outcome of a one-year open review process, in which more than 2000 individuals and organizations were invited to comment. Revisions include adding emphasis on the importance of avoiding controversial or illegal fiber sources, strengthening landowner outreach and logger training programs, and better aligning principles with international criteria and indicators.

"As a result of the transparent review process, the revised standard reflects all values, including important provisions for wildlife habitat and biodiversity," said comment review task force member Scot Williamson, v.p. of the Wildlife Management Institute. "It is both forward-looking and practical."

The amount of land certified to the SFI program in North America has grown to 178 million acres, comprised of 62 fiber sourcing certificates and over 700 chain-of-custody certificates at about 1,600 locations.

Northeastern Retail Lumber Association will host its annual LBM Expo Feb. 3-5, Seaport World Trade Center. Boston. Ma.

Educational sessions will include "Build Your Market Share in a Slow Housing Market," "Technology: The LBM Weapon for Success,"and "Building in the New, Green Economy." Also scheduled are a welcome reception, industry recognition dinner. and several breakfast talks.

In the field, regional affiliates will present a host of seminars, including:

. Microsoft essentials for LBM dealers Jan. 19 at Russin Lumber. Montgomery, N.Y., Jan.20 at Hilton Garden Inn, Nanuet, N.Y., and Feb.23 at Super Enterprises, Melville, N.Y.

Basic blueprint reading & material estimating Jan. 19-20 at Radisson Hotel, Rochester, N.Y., and Feb. l6l7 at Best Western Carriage House, Watertown, N.Y.

. Advanced estimating Jan. 2l at Radisson Hotel, Rochester, and Feb. l8 at Best Western Carriage House, Watertown.

. "Create an Experience that Customers Remember" Feb. 25 at Radisson Hotel, Rochester, N.Y.

In addition, aFeb.23 webinar will cover counter and inside sales.

Florida Building Materials

Association has scheduled its annual winter education conference for Feb.

24-26 at One Ocean Resort Hotel & Spa. Atlantic Beach. Fl.

Jim Mathis, speaker and consultant, will present a talk on "Reaching Beyond Endurance."

FBMA is also offering a new 40 lk/profit sharing plan. Members can cut costs and offload administrative tasks by rolling existing SEPs, SIMPLEs, profit sharing, and money purchase pension plans into the new program.

Illinois Lumber & Building

Material Dealers Association is staging its annual convention Feb.8-10 at Peoria Civic Center & Pere Marquette Hotel, Peoria.

Educational seminars will cover success strategies. expanding your customer base. and the costs of distracted driving. Social events include an auction and cocktail party.

Southern Building Material

Association will gather for its annual building products buying show Feb. 34 atthe Show Place, High Point, N.C. Educational sessions will include green building, estimating clinics, the essentials of selling green, and a special report on the year ahead.

Mid-South Building Material Dealers Association puts on its annual meeting and trade show Feb. 4-6 at Imperial Palace Resort, Biloxi, Ms.

The event begins with a golf tournament to raise funds for the Carl Frusha Scholarship Foundation Feb. 4 at Grand Bear Golf Resort.

Wisconsin Retail Lumber Association hosts its l20th annual convention Feb. l0-l I at Kalahari Resort & Convention Center, Wisconsin Dells. Highlights include educational sessions, a tabletop showcase, networking receptions, and more.

WRLA is also sponsoring several webinars over the next two months. including "Understanding North American Green Building" on Jan. 14, "Chain of Custody" Feb. 11, and "Sourcing & Selling Certified Wood" Feb. 25.

Indiana Lumber & Builders Supply Association elected Mark Zemrowski, Von Tobel Lumber, Valparaiso, as its new president. The annual President's Award for leadership went to Kim EmmertO'Dell, Timberland Lumber, Brazll, while the Naomi Niehause Award went to Julia Perkins, Ferguson Do It Best, Plainfield. Federated Insurance, Owatonna, Mn., won the Executives Award for Volunteer Excellence, and Ferguson Lumber, Rockville, Mn., was presented the Excellence in Community Service Award.

South Dakota Retail Lumbermen Association holds its 9l st annual convention Feb. l6-11 at Best Western Ramkota Hotel & Conference Center, Sioux Falls.

APA-The E,ngineered Wood Association installed Jeff Wagner, LP Building Products, as its new chairman at its recent annual meeting. Mary Jo Nyblad, Boise Cascade, was elected vice chair.

Thomas G. Williamson, who recently retired from APA after a 42year career in the engineering and wood products industries, was honored with the Bronson J. Lewis Award.

Safety awards went to Anthony Forest Products, Georgia-Pacific, LP Building Products, Roseburg Forest Products, Norbord, and RoyOMartin.

Tim Fisher, Grenzebach Corp., Gladstone. Or.. was elected vice chair of the Engineered Wood Technology Association Advisory Committee, succeeding Tim Ayers, who retired from Willamette Valley Co., Eugene, Or. EWTA is APA's nonprofit organization for suppliers.