Struggling National Lumber Turns to Investment Banker

National Lumber & Supply Inc., the struggling home improvement retailer, said Friday that it had retained Wedbush Morgan Securities of Los Angeles to help raise money for an ongoing restructuring program.

National Lumber President Melvin C. Jaffee declined comment on whether a sale of all or part of the firm was contemplated, saying he was “waiting for advice” from the investment banker on how to raise “millions” in new funds.

Jaffe also said the company will close its Santa Ana warehouse next week and is entering the market for upscale kitchen, window and door products as part of a revamp aimed at bringing the company back to profitability by mid-year.

A pioneer in do-it-yourself hardware stores, National Lumber has suffered declining fortunes since the mid-’80s and lost $4.4 million in the first three fiscal quarters ended Oct. 31. The company, which lost $4.6 million a year ago, has not yet reported year-end figures for fiscal 1990.

Industry analysts have attributed to the Fountain Valley-based company’s problems to the failure to respond to the competitive challenge posed by the proliferation of hardware “super-stores,” such as Home Depot.

National Lumber has begun renovating its 21 stores to accommodate new displays for upscale kitchens, windows and doors, Jaffee said. The renovation is scheduled to be completed by the end of April.