Scotty's May Soon Be On Sales Block

After terminating c.e.o. Daryl Lansdale, Belgian parent GIB Group may soon place Scotty's, Winter Haven, Fl., up for sale if its profit picture doesn't improve, European securities analysts predict.

Lansdale, c.e.o. since GIB bought the chain in 1988, was replaced by recently promoted president Thomas

Morris after 1995 sales fell l.2%o to $654 million. Morris. with Sears for 20 years before joining Scotty's in 1993, will also serve as chairman of the chain's management committee.

Morris now reports to Scotty's board through a newly created senior executive committee that includes exec. v.p. and c.f.o. Danny Crow,

Premium Water Repellent Wood On The Way

Thompson-Minwax Co. is introducing a new Hickson Corp.-formulated Thompsonized water repellent pressure treated wood and has formed a Thompsonized Wood Products Division in Memphis, Tn., to back the licensing effort.

Everything about the sell-up product is high-end. In addition to offering name brand recognition, it utilizes select grades of lumber, a mold inhibitor and reportedly the industry's highest levels of water repellent.

"Right now there are water repellent standards. Eveybody meets those standards, but nobody has gone overboard. Thompson has gone overboard, so to speak," says Hickson's

Huck DeVenzio.

The lumber also comes with higher margins and a significantly higher price tag. "It's not for posts, joists, beams and understructure," DeVenzio explains. "It's for appearance components, the decking and rails."

The product is being test-marketed in two Southeastern markets. Robbins Manufacturing, Tampa, Fl., is supplying l3 local Home Depots, while Mellco, Inc., Perry, Ga., is serving three Greensboro, N.C., Depos.

As the marketing program is finetuned, distribution will be expanded northward during the spring, gradually becoming national by 1997.

GIB home center division c.e.o. Jean Pitz, and new outside director Joe Nusim, former president and c.e.o. of Channel Home Centers.

The new management team has devised a plan to lower expenses, increase sales by improving contractor business and open up to 25 new stores in 1996, mostly in Florida. Twenty of the new units will be 10,000 to 12,000-sq. ft. hardware stores and 15,000 to 25,0fi)-sq. ft. super hardware stores, such as the l7,00Gsq. ft. unit opened Feb. 29 in Parker, Fl.

In recent years, Scotty's has been opening about the same number of units as it closes, leaving its store count at about 150.

After taking charge in 1988, Lansdale quickly designed a 40,000 to 60,00Gsq. ft. layout and increased the standard selection from 12.000 items to 30,000. He had attempted to build the chain by placing its larger unis in towns too small for a standard Home Depot and moving into affordable space in prominent shopping centers abandoned by discount stores such as Ames.

But Scotty's Inc., acquired by GIB for about $140 million, still has an outstanding debt of $160 million, and its beleaguered parent may be losing patience. It recently took a $172 million loss to divest itself of its 65Vo share of bankrupt Handy Andy, Schaumburg, Il., and is being forced to severely cut expenses and labor at its European operations.

Builders Square Splits Dept.

Builders Square, San Antonio, Tx., has reorganized a portion of its corporate merchandising deparnnent, splitting one division into two business groups: Specialty Businesses (installed sales, export sales, etc.) and Idea Centers (emphasizing home decor and special orders).

Tom Carey has joined the chain as divisional v.p. of mktg.

Other promotions: Marilyn Schultz, director of Idea Center merchandise concepts & presentation; Paul Brennan, senior director of the Idea Center group; Tim Shanahan, senior director of Specialty Businesses; Jim Denny, mgr.-commercial sales; Chris Estby, mgrinstalled sales; Ed Ferraro, paint buyer; Wayne Tucker, floor products buyer; Dwayne Medlin, kitchen & furniture buyer, and Ray Gosselin, millwork buyer.