Lumber Store Chain Reports Heavy Losses

National Lumber & Supply Inc., in its first financial report since filing for Chapter 11 bankruptcy in April, said Friday that it lost $14 million in the fourth quarter of fiscal 1990 and $6.5 million in the first quarter of the current fiscal year.

As a result of the continuing losses, the Fountain Valley company said it closed three more stores, laid off 55 employees and reduced executive salaries. Since its bankruptcy filing, the company has closed nine of its 21 stores and cut 450 employees from its 1,200-member staff, said spokesman Daniel Saks.

With the fourth-quarter deficit, the company posted a loss of $18.5 million on revenue of $140.5 million for the fiscal year ended Jan. 31. That compares to a loss of $4.6 million on revenue of $152.4 million a year earlier. The fourth-quarter loss on revenue of $32.6 million compared to a loss of $1.9 million on revenue of $35.4 million a year earlier.

National Lumber closed two stores this week in Mira Mesa and Diamond Bar and closed a third store in Culver City in June. With earlier closings of six other stores and staff cuts at the company’s headquarters, more than a third of the company’s 1,200 employees have lost their jobs since March. The stores that closed were either unprofitable or projected to be unprofitable.

Faced with a slow local housing market and stiff competition from warehouse-style retailers such as the Atlanta-based Home Depot, National Lumber filed for bankruptcy protection on April 3.

National Lumber’s loss for its first quarter ended April 30 was $6.5 million on revenue of $21.7 million, compared to a loss of $1.3 million on revenue of $34.4 million in the year-earlier period.

The first-quarter loss includes a provision of $6.2 million for costs associated with the company’s decision to close its central warehouse and nine stores.