HD Supply Closes Branches, Reduces Work Force
As of August 1, 2010, HD Supplyhas closed or consolidated 25 branches and let go of 425 employees. The company plans on cutting its work force by another 50 employees by the end of fiscal 2010. Other costs are expected to be reduced, as well as more efficiently employ working capital. This is all part of HD Supply’s restructuring plan that wasannounced last year.
This comes after HD Supply Co. reported net sales for the 2010 fiscal 2nd quarter ended August 1, of $2.0 billion, an increase of $1 million compared to the second quarter of FY 2009. Consolidated net loss for the 2nd quarter of fiscal 2010 was $115 million, compared to a net loss of $89 million for the same period in FY 2009. Net sales for the first six months of FY 2010 were $3.8 billion, a decline of 2.8% compared to the first six months of fiscal 2009. Consolidated net loss for the first six months of FY 2010 was $317 million, compared to a net loss of $79 million for the same period in FY 2009.
In fiscal 2009, HD Supply said it recognized $30 million in charges for liquidation of excess inventory and branch closure and consolidation charges. Before this latest restructuring effort - starting in the fourth quarter fiscal 2008 - management closed or consolidated 210 branches and cut the work force by 4,500 employees.
Read herefor more on HD Supply’s performance thus far.
Source: Modern Distribution Management