National Lumber Unit Sold to Jaffee : Home improvement: Chain's former president buys Cathedral City store as bankruptcy judge formalizes liquidation of once-thriving company. Builders Emporium to take over Encinitas outlet.

National Lumber Unit Sold to Jaffee : Home improvement: Chain’s former president buys Cathedral City store as bankruptcy judge formalizes liquidation of once-thriving company. Builders Emporium to take over Encinitas outlet.

By ANNE MICHAUD

Sept. 14, 1990 12 AM PT

TIMES STAFF WRITER

SANTA ANA —

Melvin Jaffee’s day in bankruptcy court Thursday marked both an end and a new beginning for the former president of National Lumber & Supply Inc.

U.S. Bankruptcy Judge James N. Barr approved the sale of the once-thriving home improvement chain’s two remaining stores Thursday. Jaffee will pay about $1.3 million for a store in Cathedral City, and Builders Emporium will buy an Encinitas store for about $1.3 million.

“I’m glad I was able to keep one store,” said a misty-eyed Jaffee, who accepted congratulations from people in the courtroom after the proceedings. He said he was sorry that the National Lumber employees in Encinitas would lose their jobs.

“That’s the only thing I feel bad about,” he said.

Jaffee, 56, had wanted to buy both stores. With his father, he spent almost half a decade building the home improvement chain, which had 21 stores when it filed for a Chapter 11 bankruptcy reorganization on April 3. Barr ordered the Fountain Valley company liquidated on Aug. 28.

The court allowed Jaffee to retain non-exclusive rights to use the National Lumber name.

Wickes Cos., the parent of Builders Emporium, agreed to pay $1.3 million cash by noon today for the Encinitas store, which will be operated as a Builders Emporium store. It also bought an option to acquire the lease of a closed National Lumber store in South Gate.

Jaffee said he plans to refurbish the store in Cathedral City, which is near Palm Springs. He also acquired the store’s inventory and two storage facilities.

Virginia-based Lumber City, which had been bidding for the Cathedral City store, pulled out of the negotiations Wednesday.

The landlord of the Encinitas store, Mitsui/SBD America Fund, held up an agreement earlier this week by objecting to Jaffee retaining the lease on that store. Mitsui said it was concerned about Jaffee’s proposed financing.