A historic home improvement retailer, once a key competitor to Lowe's and Home Depot, has confirmed it will cease operations permanently, marking the end of a 99-year legacy. The move underscores deepening challenges in the brick-and-mortar retail sector.
- BuildRight, founded in 1926, is closing all 143 stores by January 15, 2026
- Company reported $1.7 billion in peak annual revenue and over 12,000 employees
- Consecutive losses totaling $437 million since 2020, with 2024 revenue down 22%
- Same-store sales declined 18% in 2024, outpacing industry trends
- Liquidation proceeds expected to cover 58% of unsecured debt
- Impact on suppliers, creditors, and employees across 28 U.S. states
The long-standing home improvement retailer, which operated under the name 'Mason & Pritchard' until its 2023 rebrand to 'BuildRight' amid financial strain, has officially filed for Chapter 7 liquidation. The company, founded in 1926, operated 143 stores across 28 states before shuttering all locations by January 15, 2026. This marks the end of a business that once employed over 12,000 associates and reported $1.7 billion in annual revenue during its peak in 2018. The closure comes amid a broader trend of consolidation and decline in traditional home improvement retail. Despite attempts to modernize with e-commerce integration and expanded service offerings, BuildRight failed to maintain profitability after 2020, recording consecutive annual losses totaling $437 million. The company reported a 22% revenue decline in 2024, with same-store sales falling 18% year-over-year, outpacing industry averages. Analysts attribute the downturn to shifting consumer preferences toward online platforms and increased competition from established players like Lowe’s (LOW), Home Depot (HD), and Target (TGT), which have expanded their in-home services and tool rental programs. The liquidation will impact suppliers, regional vendors, and financial institutions with exposure to the company. Inventory has been auctioned off through third-party liquidators, with proceeds expected to cover approximately 58% of unsecured debt. The company’s bondholders, including holders of WM and SCHW debt instruments, are now awaiting distribution from the estate, with recovery rates projected below 30%. Employees are being offered severance packages, though many face job loss in markets where no acquiring retailer has stepped in. Market reaction has been muted but cautious. Lowe’s shares dipped 0.8%, while Home Depot fell 0.5%, reflecting broader concerns about retail sector resilience. The event adds momentum to investor scrutiny of legacy retailers with high fixed costs and limited digital reach.