ProBuild withdrawing from some Eastern markets

ProBuild Holdings, the nation's largest pro dealer, has decided to close down some of its newly built facilities in the Pittsburgh area, as well as operations in Hagerstown, Md. 

An HCN confirmation of an internal memo by ProBuild CEO Rob Marchbank last week showed that the Denver-based pro dealer has revisited its decision to operate three brand new LBM facilities in the Pittsburgh region. 

An attempt to reach ProBuild for comment or explanation received no response.

In January 2012, ProBuild opened a new location in Altoona, Pa., approximately 100 miles east of Pittsburgh. The 65,000-sq.-ft. Altoona facility included a kitchen, bath and millwork showroom, as well as a full assortment of building materials. ProBuild Altoona also offered installation services. 

Last year, ProBuild opened two other locations near Pittsburgh, which is the home turf of rival pro dealer 84 Lumber: White Oak, Pa., and Morgantown, W.Va. 

ProBuild will close operations in Pittsburgh, affecting the Altoona and White Oak, Pa., locations, as well as Morgantown, W.Va., and Hagerstown, Md.; in last week’s announcement, Marchbank said the Winchester, Va., and Frederick, Md., locations will handle the redirected Hagerstown business. 

"The strategy of opening a greenfield location in a competitive market with challenging economic conditions is not an effective approach to market growth," Marchbank wrote in the memo.