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Building Materials/Construction
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BMHC Closes two Facilities in California

Building Materials Holding Corp., San Francisco, CA, a provider of building materials and construction services to professional residential builders and contractors, announced its subsidiary BMC West will close its millwork and building materials distribution facilities in Merced and Bakersfield, CA.
 
Both markets will be served from nearby operations in Modesto and Fresno.
 
The difficult decision to close our facilities in Merced and Bakersfield is a necessity based on today’s challenging business environment and weakness in the housing markets in California’s Central Valley,” said Stanley M. Wilson, president and COO.
 
“Single-family housing permits in the Central Valley markets we serve have fallen sharply from 4,905 in the first quarter of 2007 to …

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Legal Issues in Wholesale Distribution
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The Changing Face of Product Liability

More distributors have been hit with product liability lawsuits. If pursuing a private label, distributors must educate themselves on all possible risks associated with taking on a manufacturing role. Distributors and their customers must also be aware of the risk of counterfeits in the supply chain, another potential source of liability claims.
 
Nearly 250,000 circuit breakers can fit into one shipping container. Look at how many possible homes these circuit breakers infiltrate and how many lives and properties can be damaged if the circuit breakers are defective or not installed properly,”says Bernie Heinze, attorney and president/CEO of Sequent Insurance Group, Philadelphia, PA.
 
“And that is just one container. The amount of product that is coming into …

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MDM News Digest 3703

Home Depot will consider strategic alternatives for its HD Supply unit, including a sale, spinoff or initial public offering. Nothing is definite. Today’s announcement is a continuation of the strategic review we did in November,” said CEO Frank Blake. “We are undertaking this action today because of our desire to increase our focus on our retail business. With annual revenues of $12 billion, HD Supply is a healthy, growing and vibrant business and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value.” HD said it would not announce updates to its review unless the board of directors approves a definite transaction …

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