Distribution America deals with a loss

 

With the demise of Hardware Distribution Warehouses, Inc., the co-operative of industry buying groups known collectively as “Distribution America” loses a key member, and drops from seven buying group members down to six.

HDW is in the process of winding down operations. A statement on the HDW company’s website reads: “As most of you are aware HDW has been in negotiations in an attempt to sell either of our warehouse locations and continue to service your needs. Unfortunately, no deal has been made and we are forced to close both facilities as of today (Jan. 4).”

The Charlotte, N.C.-based Distribution America describes the loss as a setback and a disappointment, but not a serious business challenge.

In an email to HBSDealer, Jody Maude, Distribution America’s advertising and communications manager, stated:  “While we are understandably disappointed, especially for all of the HDW employees, we don’t expect this to have a large impact on our organization. House Hasson Hardware and Blish-Mize acquired HDW assets including inventory and sales staff and  House Hasson is looking to expand its Knoxville warehouse to better serve former HDW customers.”

The remaining distributor members of the group – which describes itself as a “multi-billion dollar organization” – are the following:

  • Blish-Mize, Atchison, Kan.;
  • Florida Hardware, Jacksonville, Fla.;
  • House-Hasson Hardware, Knoxville, Tenn.;
  • Monroe Hardware, Monroe, N.C.;
  • PACOA, Port Washington, N.Y.; and
  • United Hardware, Plymouth, Minn.

Distribution America’s main goal, according to its web site, is: “helping retailers to compete profitably in their markets.” The group promotes its national clout along with its local knowledge.

Prior to HDW’s demise, Val-Test ended its membership in the Distribution America in late February of 2018. Val-Test created a partnership with Pro Group, based in Denver.

Distribution America’s list of former members also includes, Emery-Waterhouse Company of Portland, Maine, which was acquired by Ace Hardware Corp. in 2014. Jensen Distributing was also a former DA member, and is now part of Ace’s Emery-Jensen wholesale division.

Memphis, Tenn.-based Orgill was a member of Distribution America, before growing from a regional player into the international company that it is today. It left the buying group in 2000.

https://www.hbsdealer.com/distributorsco-ops/distribution-america-deals-with-a-loss/

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