HomeBase President Resigns, Is Replaced : Shake-up: William Patterson is out, Allan Sherman is in. Parent firm says it expects more profit from chain.

William Patterson, president of the HomeBase home-improvement chain, has resigned and has been replaced.

Waban Inc., the Massachusetts-based parent company of HomeBase, said it wants more profits out of the Fullerton-based chain. Waban appointed a new president and chief executive just five months ago “to improve the profitability” of both HomeBase and BJ’s Wholesale Club, a chain of members-only warehouse stores.

That executive, Herbert J. Zarkin, said in a statement this week that he replaced HomeBase’s Patterson with Allan Sherman, who had worked for Zarkin at BJ’s Wholesale Club.

“Mr. Zarkin wanted to build a management team that is tailored to his own hands-on way of managing,” a spokesman said.

Patterson could not be reached for comment.

HomeBase’s operating income--profit before taxes and other adjustments--rose slightly to $44.9 million last year but was just 2.9% of sales.

The year before, operating income was a slightly smaller $43.1 million but was a larger percentage of sales, 3.2%.

When it reported those earnings earlier this year, the company blamed the lackluster profit growth on the cost of opening new stores and on several stormy weeks that kept California customers indoors. It also blamed the state’s drooping economy.

Competition in the do-it-yourself building-supply business is intense, especially in big markets such as Southern California where several large chains are fighting for customers.

The region’s largest home-improvement chain, Builders Emporium in Irvine, decided to close in August. National Lumber & Supply Inc., another giant, closed three years ago.

Sherman--Patterson’s replacement as president at HomeBase--had moved up to the presidency of BJ’s after Zarkin was promoted from that job in May to head the parent company.

Also resigning from HomeBase this week was Harold Compton, executive vice president for store operations.

HomeBase operates 90 stores in the West and Midwest; BJ’s, with 47 members-only discount warehouses, is the largest such chain in the Northeast.