Suncoast Roofers Supply Inc., Tampa, FL, has filed for Ch. 11 bankruptcy protection. In its bankruptcy filings, the roofing supplies distributor reported a 57% decline in sales over 2006 due to the decline in housing and related markets.
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For the nine months ended Sept. 30, 2007, sales were about $100 million. By comparison, sales for the distributor during fiscal 2006 were $209.6 million.
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At the same time the distributor was hit with the housing slump, it embarked on an ambitious expansion campaign to vertically integrate” its manufacturing and distributing processes to improve product availability and delivery, and “capture a larger share of supply chain profits.”
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In 2006, Suncoast acquired 80% of American Concrete Tile Inc., a Florida-based manufacturer of concrete tile products, and in March 2007 acquired J. Mila Enterprises Inc., a Florida-based manufacturer of metal roofing, flashing and edging products.
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In June 2007, the distributor completed the construction of a concrete tile manufacturing plant in Arcadia, FL.
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“This rapid expansion during one of the worst housing market declines in decades has left the Debtor strapped for cash required for working capital,” Suncoast said in its bankruptcy filing.
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The distributor of roofing supplies to Florida residential and commercial markets had sales of $211.7 million in 2005, and $209.6 million in 2006. Suncoast sells asphalt, tile, and metal roofing products and accessories. It serves more than 2,500 contractors as well as retail customers through its network of warehouses in Florida.
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The distributor estimates that it has an 11% market share in the Florida roofing products market, giving it the No. 2 spot.
Suncoast lists its debt as more than $60 million.
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Suncoast filed for bankruptcy protection in the U.S. Bankruptcy Court in the Middle District of Florida.
