Payless Cashways
Encyclopedia
Payless Cashways Inc. was a major building materials retailer in the 1980s and 1990s and many consider it the first national chain to implement the powerful DIY
strategy. They operated throughout the Mid West under the names Payless Cashways. Payless Cashways differed from modern DIY retailers in that they utilized an fully functional outdoor lumberyard. Customers would purchase materials inside the store and upon payment drive their vehicle into the lumberyard area and give the order ticket to an attendant. Payless Cashways faced
their first major challenge in the mid 80s when they were the target of a leveraged buyout
led by Asher Edleman and Sutherland Lumber. The resulting Payless Cashways stock buyback left them saddled with debt that almost stopped the expansion and steered the retailer to be left behind by the upstart "Big Box
" home centers like Builders Square
and Home Club (later Home Base). The company struggled through the nineties with moderate successes and recurrent failures and never regained the glory days of their first big expansion. The last straw was the burst of the dot com era that left many banks unwilling to continue the dream of it ever becoming a viable competitor to the successful Home Depot and emerging Lowe's
chains. On Sept. 10th, 2001 the company (already in bankruptcy) was ordered to be liquidated.
Do it yourself
Do it yourself is a term used to describe building, modifying, or repairing of something without the aid of experts or professionals...
strategy. They operated throughout the Mid West under the names Payless Cashways. Payless Cashways differed from modern DIY retailers in that they utilized an fully functional outdoor lumberyard. Customers would purchase materials inside the store and upon payment drive their vehicle into the lumberyard area and give the order ticket to an attendant. Payless Cashways faced
their first major challenge in the mid 80s when they were the target of a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
led by Asher Edleman and Sutherland Lumber. The resulting Payless Cashways stock buyback left them saddled with debt that almost stopped the expansion and steered the retailer to be left behind by the upstart "Big Box
Big-box store
A big-box store is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store...
" home centers like Builders Square
Builders Square
Builders Square was founded as a big-box home improvement retailer headquartered in San Antonio, Texas. A subsidiary of Kmart, its format was quite similar to Home Depot, Menards and Lowe's with floor space of about . Builder's Square.com, Inc. has its headquarters in Edison, New Jersey...
and Home Club (later Home Base). The company struggled through the nineties with moderate successes and recurrent failures and never regained the glory days of their first big expansion. The last straw was the burst of the dot com era that left many banks unwilling to continue the dream of it ever becoming a viable competitor to the successful Home Depot and emerging Lowe's
Lowe's
Lowe's Companies, Inc. is a U.S.-based chain of retail home improvement and appliance stores. Founded in 1946 in North Wilkesboro, North Carolina, the chain now serves more than 14 million customers a week in its 1,710 stores in the United States and 20 in Canada. Expansion into Canada began in...
chains. On Sept. 10th, 2001 the company (already in bankruptcy) was ordered to be liquidated.