Contractors Wire & Cable shuts its doors
Contractors Wire & Cable, an outsource manufacturer and distributor of low voltage cable and wire products, closed its doors on August 26.
The distributor, which was headquartered in Livermore, Calif. had distribution centers in Livermore, Dallas, Atlanta and Anaheim.
The company sent an email to customers which read:
“It is with regret that we advise you that as of today, August 26, 2011, Contractors Wire and Cable, LLC, is closing its doors, and ceasing operations in all of its locations. This is a result of the prolonged difficult economic conditions in our industry that have adversely impacted the Company. We appreciate the support and business that you have provided to us over the years, and wish you success in the future.”
Derek McMullen, president of the company could not be reached for comment. McMullen sold the company to private equity firm Carlisle Enterprises in 2007, though he did retain an ownership stake in the business.
Other distributors, Tri-Ed Northern and ADI declined comment on this story.
Carlisle Enterprise managing partner, David Canedo, did not return calls or an email from SSN, requesting comment. Contractors Wire & Cable is still listed as part of Carlisle’s portfolio on its web site.
Canedo and McMullen were interviewed by SSN in March of 2008, when the company expanded to Atlanta. At that time, both were optimistic about the growth of the company.
At that time, McMullen told SSN that the company had $25 million in revenues in 2007, was expecting $31 million in 2008, and had the goal of hitting $75 million by 2011.
From that interview: “[Canedo] and McMullen both feel, too, that Contractors' combination of manufacturing and distribution abilities give the company a competitive advantage. "In our manufacturing side," said McMullen, "the one thing that sets us apart from other manufacturers is they're not specialists. Being geared into a certain area, we can look for ways to reduce costs to the installers."
Canedo also pointed to Contractors' diversification between the residential and commercial/industrial markets as a reason for continued growth. He admitted to being surprised by how deep the downturn in the builder market has been, but "so far there hasn't been a downturn in the commercial/industrial side," he said. "Whatever we're losing on the residential side we'll more than offset with the industrial side."