BlueLinx Announces Deleveraging Plan
OREANDA-NEWS. BlueLinx Holdings Inc. (NYSE:BXC), today announced an operational efficiency initiative to improve its working capital performance and reduce the Company’s financial leverage.
The initiative included a strategic review of the Company’s distribution centers and the Company has identified four facilities for closure. The Company will continue to fully operate these four facilities, with transition actions commencing immediately. We expect to close these four facilities by the end of 2016.
Charges associated with the facility closures include approximately $3.5 million to $4.5 million of costs in connection with exiting these facilities. The anticipated future real estate gains from the sale of the closed facilities is expected to substantially exceed the associated charges of the deleveraging initiative.
“The actions we announced today demonstrate our strong commitment to deleveraging the balance sheet and reducing our long term debt, so that we can continue to invest in the areas of the business consistent with our long term strategic goals,” said Mitch Lewis, President and Chief Executive Officer.
About BlueLinx Holdings Inc.
BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. The Company is headquartered in Atlanta, Georgia and operates its distribution business through its national network of distribution centers. BlueLinx is traded on the New York Stock Exchange under the symbol BXC.
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