A Houston-based company, Handy Hardware Wholesale Inc., filed for Chapter 11 bankruptcy after starting a second distribution center during the U.S. recession.
The company was founded in 1961 by hardware retailers who wanted to discuss lowering the price of inventory. Handy Hardware has 1,000 members who own the company completely. They are over 1,300 outlets which consist of retail hardware stores, lumber yards, and home centers. The decreased inventory prices made it easier for the members—mainly family owned, independent businesses—to challenge other companies like Home Depot Inc. and Lowe’s Cos.
In 2009, Handy Hardware constructed a 460,000 square-foot warehouse in Meridian, Mississippi. The new building permitted costs to go up as America was tumbling into a depression. By 2011, they had lost $8.4 million. On top of its bond debt, the business owes $14.6 million to secured creditor Wells Fargo & Co.
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