Furrow Building Materials

Payless Cashways, Inc.

Company type	Public (formerly), Private (1988–1997)
Industry	Retail (building materials and home improvement supplies)
Founded	1930
Founder	Sanford "Sam" Furrow
Defunct	2001
Fate	Bankruptcy and liquidation
Headquarters	Kansas City, Missouri , United States
Area served	United States (22 states)
Products	Building materials, home improvement supplies

Payless Cashways, Inc. was a publicly traded company headquartered in Kansas City, Missouri, specializing in the retail of building materials and home improvement supplies. Operating predominantly through the 1980s and 1990s, it was among the pioneering national chains to embrace the DIY retail approach. The company faced significant financial challenges by the late 1980s.

Unlike contemporary home improvement retailers, Payless Cashways featured an operational outdoor lumber yard where customers would pay inside the store and then proceed to the yard to present their order ticket to an attendant for material pickup. Prior to its bankruptcy filing, the company managed 194 outlets across 22 states.

History

The enterprise was established in 1930 by Sanford "Sam" Furrow, who, together with his sons and partner John Evans, acquired a financially troubled lumberyard in Pocahontas, Iowa. Subsequently, Furrow purchased two additional lumberyards also under financial distress. Initially named Kiefer-Wolfe Lumber Company, the original location was soon rebranded as Pocahontas Lumber Store. Following growth and a division between Furrow and Evans, Sam Furrow and his sons adopted a "cash-and-carry" model, enabling them to offer prices lower than those involving credit sales to contractors. The business ultimately adopted the Payless Cashways brand; however, due to trademark conflicts in states such as Texas, Oregon, Missouri, Kansas, Oklahoma, California, and Indiana (where Payless was already used by a grocery chain), new stores opened under the Furrow's name. By 1981, it ranked as the fifth-largest company within its sector.

In 1983, Payless Cashways acquired Sacramento-based Lumberjack Stores Inc. for $26.3 million (adjusted for inflation). The following year saw the purchase of Somerville Lumber & Supply Company from Somerville, Massachusetts for $12 million in stock. Further expansion occurred in 1986 with the acquisition of Knox Lumber Company headquartered in Saint Paul, Minnesota; financial terms were not disclosed.

In 1988, Payless Cashways transitioned from public to private ownership but failed to generate profits during its five years as a private entity.

That same year marked a significant turning point when Payless Cashways became the target of a leveraged buyout led by Asher Edelman alongside Sutherland Lumber. Additionally, The Ward White Group—a British firm operating a similarly named retailer—made a takeover proposal. In defense against these efforts, Payless Cashways repurchased all 33.6 million outstanding shares at $27 each for a total of $909 million. This substantial stock buyback burdened the company with considerable debt that curtailed further growth.

As a result of this financial strain and operational stagnation, Payless Cashways fell behind emerging big-box home improvement competitors such as Builders Square, HomeBase, Menards, Home Depot, and Lowe's. Throughout the 1990s, the company experienced intermittent successes but also repeated setbacks without regaining its initial expansion momentum.

Ultimately, Payless Cashways filed for Chapter 11 bankruptcy protection in July 1997. The subsequent collapse of the dot-com bubble left financial institutions reluctant to provide assistance necessary for ongoing operations. The United States Bankruptcy Court for the Western District of Missouri ordered liquidation on September 10, 2001—the day preceding the September 11 attacks.

Names Operated Under

Payless Cashways managed its retail outlets under multiple brand names, typically maintaining a single brand identity within each specific region. These included:

• Payless Cashways
• Furrow
• Lumberjack
• Hugh M. Woods
• Knox Lumber
• Somerville Lumber
• Contractor Supply
• PCI Builders Resource
• PCIBuildStreet.com

See also

• List of defunct retailers of the United States