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84 Lumber closes 12 stores
Pittsburgh locations untouched
Thursday, December 06, 2007
84 Lumber Co. closed 12 stores in nine states yesterday as the Washington County building supply company continued to adjust its operations during a difficult year in the nation's housing market.

The move, which follows layoffs at the private company's Eighty-Four headquarters last week, did not affect any stores in the Pittsburgh area.

Only two stores were closed directly as a result of slow housing starts in their areas, said spokesman Jeff Nobers. The communities of Redding, Calif., and Manchester, Tenn., are both seeing new construction levels significantly below the level that 84 Lumber officials believe is needed to support stores.

Five shuttered stores were in metropolitan areas served by a number of locations that could absorb the business. Those were in Loveland, Ohio; Palatine, Ill.; Ellicott City, Md.; Amsterdam, N.Y.; and Granite City, Ill.

Four more were described as relocations, in which bigger stores had been built nearby. Those were in Greensboro, N.C.; Pineville, N.C.; Columbia, S.C.; and Slidell, La. A store in Merced, Calif., is being converted into a plant to make structural components.

About 100 store employees were notified of the changes yesterday, but many are expected to relocate to other sites, Mr. Nobers said. Last week's headquarters job trimming eliminated 40 to 45 positions, but, he said, movement into other positions means that about 20 people actually will leave the company as a result of that action.

The Pittsburgh-area housing market has been relatively stable, but 84 Lumber has had three rounds of headquarter layoffs within the past year as a result of slowdowns in the pace of home construction in markets such as Florida and Arizona.

Store closings also reflect a move toward a larger store model that can serve a broader area, said Mr. Nobers. In spring 2006, the company closed more than 60 stores in rural areas or mature housing markets.

After yesterday's moves, 84 Lumber has 415 stores and 20 component plants.

Teresa F. Lindeman can be reached at tlindeman@post-gazette.com or at 412-263-2018.
First published on December 6, 2007 at 12:00 am