USG Corp. to Close Eight L&W LocationsAugust 30th, 2011 | Category: Industry News
USG Corp., parent company of L&W Supply Corp., filed a report with the Securities and Exchange Commission on August 25 stating that it will close eight distribution branches and its Nevada custom door and frames business, “to adapt to market conditions.”
The company says the closures will occur before the end of the third quarter, and will record charges of approximately $7 – $8 million in the current and future fiscal quarters related to these closures. This includes approximately $5 – $6 million related to equipment and distribution branch lease terminations, approximately $1 million for termination benefits and approximately $1 million for associated costs, including inventory write-offs. The company estimates that it will incur cash expenditures of approximately $6 – $7 million in the current and future fiscal quarters in connection with the closures, according to the filing.