McCoy's Building Supply announced today, July 12, that it will sell its stores in Greenville, Vicksburg, and Laurel, MS, as well as its Searcy, AR, location to Central Network Retail Group (CNRG). McCoy's also said it has been forced to close its Corsicana, TX, branch because of a highway expansion.
The Mississippi and Arkansas locations are among the most remote in the San Marcos, TX-based McCoy's network but are home ground for CNRG's Home Hardware stores.
“We have learned in recent years the importance of managing our own distribution for core products, and we have made big investments in growing our distribution capabilities to serve as many stores as possible," McCoy's President and CEO, Meagan McCoy Jones, said in a news release. "These four stores are outside the reach of our distribution network, and as we plan our growth, Mississippi and Arkansas are not in our target geography. The best opportunity for these stores is with an owner who is investing in this geography and in whom we trust to operate and lead well.”
CNRG President John Sieggreen said in the same news release: "We are excited to have the opportunity to add four McCoy’s stores to Home Hardware Center. HHC was our first CNRG brand, and these stores will fit nicely into their current footprint."
The Corsicana store had to be closed "due to an expansion of a highway project by the Texas Department of Transportation," McCoy's said. Surrounding McCoy's locations will continue to serve the market, and all of Corsicana's employees have been offered jobs in other locations."
Jones also stressed that "McCoy's has no plans to close or sell any other stores or facilities. We have absolutely no plans to sell the company." Her declaration comes just four days after US LBM announced its acquisition of Foxworth-Galbraith Lumber, a Texas institution with $927 million in sales last year, ranking it 25th on the Webb Analytics Construction Supply 150.
McCoy's stands 20th on the Construction Supply 150, with $1.42 billion in sales last year. Following the sales of the Mississippi and the Arkansas yards and the closing of the Corsicana store, McCoy's will operate 85 stores, three distribution centers, and two millwork facilities in Texas, Oklahoma, and New Mexico.