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Norfolk building supplier closing after 118 years

Posted to: Business Consumer - Retail Norfolk Realty News

NORFOLK

Howard Filer peered out at the mostly empty lumber yard at Norfolk Sash & Door.

All that remained beneath two wood sheds were a couple of loose stacks of lumber.

"This was a busy place at one time," said Filer, president of the family-owned building materials supplier. "Just a few years, ago we had materials piled as high as that gutter."

Today, after 118 years, the company will shut its doors.

As the housing downturn has taken its toll on the region's building industry, business for Norfolk Sash & Door has all but dried up. Demand for the doors, knobs, lumber and framing supplies the company sells has plummeted.

"There are no customers out there," Filer said.

Grover Cleveland was president when the company opened in 1893, and the country was facing a severe economic downturn. Back then, the business operated on the Norfolk waterfront bartering glass, coal, produce, oysters, seafood and grain along the wharf. The company evolved over the years into a sawmill, and eventually to selling lumber and doors.

Filer's grandfather was one of three men who bought the firm in the 1920s. It continued to grow, eventually becoming a full-blown lumber yard.

Norfolk Sash & Door has been located since the 1960s in the Norfolk Industrial Park, where it moved after a fire destroyed its Boissevain Avenue location. Business grew steadily and annual revenues topped $3 million by 1992, a year before its 100th anniversary.

By 2005, at the height of the housing boom, sales rose to $5.5 million.

"We were on top of the world," said Filer, 63, who joined the company in 1973 and took the reins from his father, Rowland, decades ago. "We were doing our best just to keep up with orders. It was a freakish rise to the top of what we thought was success, but it was a cliff.

"And when the bubble popped, I heard it pop loud."

Since its founding, Norfolk Sash & Door has weathered roughly two dozen economic downturns, even the Great Depression. But the most recent one - which has been particularly hard on the housing industry - brought the company to its knees.

Last year, revenue fell below $3 million. Its workforce of 14 is half what it was at the peak a few years ago.

"We had been told things would get better," Filer said of 2010. "But it was still a flat line."

Tired of "treading water," Filer decided to act at the beginning of this year.

"I'm sitting there thinking to myself that this country has bigger problems than I ever realized," he said. "The unthinkable idea of shutting my family company entered my mind."

Filer said he vowed that if, by June, business did not improve, he would close.

Two weeks ago, Filer drove out to Virginia Beach to break the news to his 88-year-old father, who lives in a retirement community.

"It was raining hard, and the rain was coming out of my eyes," Filer said.

His father told him it was better to close now before things got worse.

"When I left, the last thing he said to me was don't embarrass or humiliate the company's name with the way you end the business," Filer said. "Don't end in bankruptcy."

Last week, letters went out to customers informing them that Norfolk Sash would be closing.

Among the first customers to hear the news was Virginia Beach builder Jim Sykes.

"I can't tell you how sad I am that that business is closing," he said. "They were our supplier of choice and really intertwined with our business."

Sykes said he's been buying building materials from Norfolk Sash & Door for three decades.

"But more than that, the relationships we formed over the years were important," he said. "If they did anything well, it was customer service. They never let us down. It's a way of doing business that I'm afraid is going away."

Luke Kellam, a builder on the Eastern Shore, has been a customer for 10 years. He said the past few years have been tough on builders, but working with Filer and the employees of Norfolk Sash & Door was a bright spot.

"He has been my sounding board," Kellam said. "Whenever I'd have a bad hair day, he was the guy I'd call."

In recent days, Filer said, he's been trying to find jobs for his workers, some of whom have been with the company for decades.

"I've called every construction yard in a 50-mile radius," he said. "I want to give every employee a soft landing."

After shutting its doors today, Filer will spend the next few weeks selling off any inventory and company supplies that are left. He plans to donate some of the materials to nonprofits and religious groups and eventually sell the property.

Filer also plans to find new work, but for now he's more concerned with tying up loose ends.

"I really hate to see the company go."

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com

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Pat, Howard and the Crew at NSD will be sorely missed -

at least by my little company! If good customer service is the "bad business practice" that the previous comment referred to - then maybe they are right. Obviously that uninformed person never did business with NSD. The entire staff was kind, courteous and knew their inventory. A key part of our small projects was that special piece of trim or using the right match for the wood needed in many old homes. A break in my day out of the warehouse stores, great help on buying the doors essential to your project (and you knew they would be right!) intelligent friendly service, and always fresh roasted peanuts by the sales counter(even bags to take with you!). This is a real loss to the building supplier mix in South Hampton Roads! Miss you!

Who is VA Beach Guy?

Just look at who got rich: mortgage Bankers, Countrywide, Monarch Mortgage, Merrill Lynch, Morgan Stanley and the Wall St. banks who pushed bad loans on homeowners and investors. The people who lost money were your neighbors and friends. Barney Frank and Freddie Mac played a small role and Barney did not make a dime unlike the bankers who made millions and should be in jail.

Realtors that didn't spend

Realtors that didn't spend all their money, home builders that pulled back, and many others also had very good times during the housing boom.

Heck, the company at the subject of the article likely had a great time during the housing boom.

The market mania advanced many future sales. People didn't get it, but the $8000 first time homebuyer tax credit did the same thing.

Really the people who lost are the honest renters that didn't sign paperwork to purchase a house they couldn't afford. But they are being punished, the gov't is working to save those that did do this, mainly because the gov't really wants to save the banks and investors (pension funds, etc) that hold the bad loans.

The bubble, awe yes

Yup, you can blame it on the bubble if you like. Sorry to hear them go under, I love hearing about long standing business. Makes you feel like they did something right. As for the bubble, yes. People do not trust what's going on in this "I say so world". A house appreciates, but a car doesn't? Put in granite, it is worth more? The house sales in your neighborhood affect your home price. All of it is a rack job if you ask me. There is no true way of valuing homes, we had certified appraisers, but they shafted the people too and the government didn't once reprimand them. Many people got sold up the river intrusting home appraisals when really they were just getting over. Now people are scared because no one trusts anyone.

Different appraisers

It wasn't the appraisers that were warning people that there was a bubble: it was economists that have tracked the housing markets for DECADES, and saw it for what it was. Don't forget who the appraisers work for. Cities make more money off of homes that are appraised at higher values. The appraisers, and the communities, got caught. That shouldn't be any surprise to any homeowner.

What goes up must come down, it is a rule of any market. What caught people by surprise was how quickly the housing market came apart. Even many of those economists that were warning of the bubble were surprised at how quickly the collapse came about and how far it has fallen, but then, that is why they are called 'bubbles.'

Actually, appraisers DID cry

Actually, appraisers DID cry foul. The old school ones were pushed out of the market by the lenders who would quit using them if they didn't appraise the house at the value given by the lender. They did cry. There are 60 minutes episodes about it. Old stories, back when no one wanted to hear about the housing crisis because they were all drunk.

http://www.cbsnews.com/stories/2008/03/14/eveningnews/main3940741.shtml?tag=contentMain;contentBody

The lenders and realtors were pushing this! Lenders resold the garbage loans so they weren't stuck with the risk.

The result of a bubble

For years there were a few economists trying to warn of the housing bubble and that it was going to burst. The closing of this fine business is another result of it. Too many banks saw there was money to be made and couldn't see any end of it. Others of their creed figured the U.S. government would bail them out, that they were 'too big to fail'. Well, they weren't too big to fail, but they were right about one thing: they did get bailed out by the government for their bad business decisions.

This recovery is a long way from being over. I'd say it has barely gotten out of the starting gate. Don't be surprised to hear of more companies going out of business like this one.

What recovery?

Do you see anything getting better? Oh wait. I will trust the Govt that the resession ending how long ago?

I feel we are on the Titantic taking on water, but the Govt is telling people to go back in the lounge and have some drinks to take the chill off.

Yes a recovery

There are definite indicators that there is an up tick in the economy, but they are minor. Some businesses are recovering faster but those are ones that are led by business managers that are smart enough to adapt to changing times. People have to realize that we can't expect things to go back to the way they were; that's just not going to happen.

Using your sinking ship reference, I'd say we've just about got all the holes plugged and the pumps are keeping up with what's coming in. We Americans have a great tendency to want everything to happen fast, like yesterday, when economic realities just don't work that way.

Downturn of the housing mkt to blame

Freddie and Fannie, which the current administration still supports, are indeed to blame for selling loans to those who had no way of paying them back. "This was a busy place at one time," said Filer, president of the family-owned building materials supplier. "Just a few years, ago we had materials piled as high as that..." (roof) "...gutter." Go figure...

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