As of August 1, 2010, HD Supply has closed or consolidated 25 branches and let go of 425 employees.
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.
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