HD Supply to lay off 350, consolidate 25 branches

Atlanta HD Supply plans to lay off 350 employees and consolidate 25 branches in its continuing effort to stem losses related to the decimated residential and commercial construction industry, according to an Atlanta Journal-Constitution.

Since fourth quarter 2008, the company and former Home Depot division has laid off 4,500 employees nationwide and closed or consolidated 210 branches. The company expects to incur $45 million in costs to reorganize its operations.

HD Supply now has 16,000 employees in 800 locations. The company posted a $267 million net loss for the third quarter on $1.9 billion in net sales, which was down 25% from the same period a year ago.

HD Supply was the brainchild of former Home Depot CEO Bob Nardelli, who built what was then a $12 billion division, by buying up lumber and other supply companies over several years, the report said.

Current Home Depot CEO Frank Blake sold the division in 2007 for $8.5 billion, saying that the division had distracted Home Depot from its flagship home-improvement stores.

HD Supply was bought by three private investment firms: Bain Capital Partners, the Carlyle Group and Clayton, Dubilier & Rice.