Knox Lumber

Payless Cashways, Inc.

Company type	Public (until 1988), then Private
Industry	Retail (Building materials)
Founded	1930
Founder	Sanford "Sam" Furrow
Defunct	2001
Fate	Bankruptcy and liquidation
Headquarters	Kansas City , United States
Area served	United States (22 states)
Products	Building materials

Payless Cashways, Inc. was a publicly traded company specializing in the retail of building materials, headquartered in Kansas City, Missouri, United States. Operating predominantly throughout the 1980s and 1990s, it was among the pioneers in adopting the DIY retail concept on a national scale. However, the company encountered financial setbacks in the late 1980s.

Unlike contemporary home improvement retailers, Payless Cashways featured an operational outdoor lumber yard. Customers would make their purchases inside, then proceed with their vehicles to the lumber yard section to present their purchase receipts to staff for order fulfillment. Before its bankruptcy filing, the chain maintained 194 outlets across 22 states.

History

The enterprise was established in 1930 by Sanford "Sam" Furrow, who acquired a defaulted lumberyard in Pocahontas, Iowa, alongside his sons and business associate John Evans. Following this initial purchase, Furrow expanded by acquiring two additional lumberyards also facing financial difficulties. The first location operated under the name Kiefer-Wolfe Lumber Company before being renamed Pocahontas Lumber Store. As the business grew, Furrow and Evans divided their interests; Sam Furrow and his sons adopted a "cash-and-carry" model that allowed them to offer lower prices by avoiding credit risks typically associated with contractor accounts. Eventually, the brand evolved into Payless Cashways, although new stores in Texas, Oregon, Missouri, Kansas, Oklahoma, California, and Indiana were launched under the Furrow's name due to trademark conflicts (for instance, Payless was already used by a grocery chain in Indiana). By 1981, Payless Cashways ranked as the fifth largest company within its sector.

In 1983, Payless Cashways expanded by acquiring Lumberjack Stores Inc., based in Sacramento, California, for $26.3 million (~$Template:Format price adjusted for inflation). The following year saw another acquisition when Somerville Lumber & Supply Company from Somerville, Massachusetts was purchased for approximately $12 million in stock. In 1986, the company further extended its reach by buying Knox Lumber Company of Saint Paul, Minnesota; financial terms were undisclosed.

In 1988, Payless Cashways transitioned from public to private ownership but did not generate profits during its five years as a private entity.

That same year marked significant challenges when Payless Cashways became the target of a leveraged buyout led by Asher Edelman and Sutherland Lumber. Additionally, The Ward White Group—a British firm operating a similarly named retailer—made a takeover proposal. To counter these attempts, Payless Cashways repurchased 33.6 million outstanding shares at $27 each for a total of $909 million. This substantial stock buyback burdened the company with heavy debt that hindered further expansion. Consequently, Payless Cashways fell behind emerging big-box home improvement retailers such as Builders Square and HomeBase, followed later by Menards, Home Depot, and Lowe's. Throughout the 1990s, the company experienced intermittent successes but struggled to regain its earlier growth momentum.

Ultimately, Payless Cashways filed for Chapter 11 bankruptcy protection in July 1997. The collapse of the dot-com bubble further limited access to financing from banks crucial for sustaining operations. The United States bankruptcy court for Western Missouri ordered liquidation on September 10, 2001—ironically one day prior to the September 11 attacks.

Names Used for Operations

Payless Cashways conducted business through multiple brand names, typically assigning a distinct banner to each 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