rebounding retailer

Colvin restructured the company, setting up a budget, more closely analyzing pricing, and installing a compensation system based on performance. The latter didn't sit well with the unmotivated staff, which consisted of a bookkeeper, two counter people and a yard man, all unionized. "One reason the business was suffering was because it had union employees," Colvin explains. "We got rid of the union, and offered the union workers non-union scale jobs." All of them declined.

Colvin used one of his senior consultants, Bill Quinn (who had never been behind a lumber counter in his life), as general manager for the first month, until industry veteran Terry Melzer was hired. Melzer hired the counter and yard staff, a full-time chief accountant, and an outside salesperson, all experienced and enthusiastic.

Revitalizing such a small company in such dire straits likely would have been impossible without the relationships and bargaining power Kingsley had built from his other yards. Kingsley Lumber's history with banks helped secure credit, while its reputation with vendors helped negotiate delayed billing.

Next came identifying the company's niche, which years before had been known for its mouldings. "We tried to rejuvenate the idea that Montavilla was Portland's place to buy mouldings," says Colvin. "We stressed the slogan 'Montavilla Means Mouldings.' Kelleher Corp. provided moulding displays, and we changed the look of the store."

Now, ownership had to make Montavilla look like a viable business. They repainted the store and added new doors. A new CSD computer system was installed, and an upstairs breakroom turned into an outside sales office.

Montavilla began exhibiting at local trade shows and eventually purchased a new truck.

All the activity told the community that Montavilla was back in business. The company became profitable almost immediately.

Sales in 1997,the company's 50th year, reached $880,000. In March, Colvin sold his share to Kingsley, who will now operate it as a division of Kingsley Lumber Co.