Finding

Flurry Of Retailers Close Shop In California

In most industries, it's unusual for a century-old firm to call it quits. But in California, in the retail lumber business, the exception is becoming the rule.

Fifty-year industry veteran Henry Beede is shuttering Antioch Lumber Co., Antioch, when he retires later in the year. The company was founded in 1866 and has been in the Beede familv for neady 120 years.

The entire nation may be in a recession, but it's hining this industry and California especially hard.

"The area and (business) climate are just not conducive to a building supply business," said a representative of Solvang Mill & Lumber Co., Solvang, Ca., as it sells off the last of its inventory. Any plans for the future? "Not in this industry," he responded.

Restrictions on lumber are now being joined by resrictions on just doing business in California. Increased taxes and soaring workers' compensation premiums are making things worse, driving companies out of the state and out of business.

Homeowners are also fleeing the

Golden State, faced with escalating unemployment and high housing costs.

But the most obvious culprits are the prolonged construction slump and the popularity of warehouse chains like Home Depot. Doing baule with the big boys means flexibility, perhaps changing the orientation of the business, an often difficult proposition for many older companies, some set in their ways.

McWilliams Lumber Co., a45 year fixtue in Modesto, is closing, following on the heels of ll4-year-old neighbor Modesto Lumber Co. Modesto Lumber and McWilliams. with its lumber yard, True Value hardware store, truss shop and prehung door facility, were too heavily reliant on the construction industry and couldn't hang on any longer.

High land costs also add to the difficulty of making money off lumber. Hull Lumber Co., Venice, was still making a profit when it closed last month. The 45 year old company lost its land lease.

Many long-time yards own their own land, but the property can often be put to better use. Rialto Lumber

Co., Rialto, founded in 1954, is voluntarily liquidating and currently leasing the property to a pallet company. By leasing the lan( owner Jerry Holdren is "making more profit than I've seen in years" from the lumber business. The company will be closed completely by Dec. 1 and is now selling offits equipment and remaining stock. Unlike many businesses, Rialto is paying off its creditors.

The timing of this latest rash of retail closures is due in part to the expected upswing in business during the summer - that for many companies never arrived.

But lately California retail closures lrrow no season. Earlier in the year, the industry lost Modesto Lumber, Latham Lumber Sales, Valley Lumber, Hubbard & Johnson Lumber, Sylvan Lumber Co., Dill Lumber and it appears the list will continue to grow.

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