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Lowe’s to buy Foundation Building Materials for $8.8 billion

SUMMARY:

  • Lowe’s to acquire in $8.8B deal, closing in Q4
  • Move boosts Lowe’s presence in professional builder market
  • Rival expanding through GMS and SRS

is buying , a distributor of drywall, insulation and other products, for approximately $8.8 billion as the retailer intensifies its focus on .

FBM also provides metal framing, ceiling systems, commercial doors and hardware and other products that serve large residential and commercial professionals in both new and repair and remodel applications. It has more than 370 locations in the United States and Canada serving 40,000 professional customers.

The is part of Lowe’s move to provide more options for professional builders. The Mooresville, -based company recently closed on its $1.3 billion acquisition of Artisan Design Group, a provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to home builders and property managers.

Rival Home Depot has been making similar moves. In June the home improvement retailer announced that it was buying specialty building products distributor GMS for $4.3 billion.

GMS Inc. of Tucker, Georgia, is a distributor of specialty building products like drywall, steel framing and other supplies used in both residential and commercial projects.

Home Depot’s acquisition of GMS came after it purchased SRS Distribution, a materials provider for professionals, last year for more than $18 billion including debt. SRS provides materials for professionals like roofers, landscapers and pool contractors.

Neil Saunders, managing director of GlobalData, said that the professional builder market provides a growth opportunity to both Home Depot and Lowe’s as there’s a lot of spending in the segment.

“Pro is basically the new battleground for home improvement,” he said. “Naturally, with two big giants in the arena, there are likely to be some bruising battles ahead. However, at this stage, we believe the market is big enough and fragmented enough to allow both players to extract some wins.”

Lowe’s deal for FBM is expected to close in the fourth quarter.

Aside from the acquisition, Lowe’s reported its fiscal second-quarter financial results on Wednesday. The company posted an adjusted profit of $4.33 per share, which topped the $4.23 per share that analysts polled by Zacks Investment Research expected.

Revenue totaled $23.96 billion in the period, which met Wall Street’s expectations.

Lowe’s raised its full-year sales outlook to a range of $84.5 billion to $85.5 billion. It previous predicted sales would be between $83.5 billion and $84.5 billion for the year.

The company’s stock rose more than 3% before the market open.

Target taps longtime executive as new CEO amid sales slump

SUMMARY:

  • COO Michael Fiddelke named , replacing Brian Cornell after 11 years
  • Retailer faces weak sales, messy stores and market share losses to and TJ Maxx
  • Analysts question whether insider pick can reverse Target’s sales struggles

NEW YORK (AP) — Target is counting on a company veteran to revive its magic as it struggles to compete with rivals like Walmart.

The Minneapolis-based retailer said Wednesday that Chief Operating Officer Michael Fiddelke, who has been with Target for 20 years, will become CEO Feb. 1.

He succeeds Brian Cornell, who helped reenergize the company when he took the helm in 2014 but has struggled to turn around weak sales in a more competitive landscape since the COVID pandemic.

Fiddelke has overhauled Target’s supply network and expanded the company’s stores and digital services while cutting costs. In May, the company announced that he would lead a new office focused on faster decision-making to help accelerate sales growth.

Fiddelke is taking over at time when Target’s sales are in a funk, its stores are messy and understocked, and it’s losing market share to rivals.

He said he’s stepping into the role with three urgent priorities: reclaiming the company’s merchandising authority; improving the shopping experience by making sure shelves are consistently stocked and stores are clean; and investing in technology at the company’s stores and in its supply network.

“When we’re leading with swagger in our merchandising authority, when we have swagger in our marketing, and we’re setting the trend for retail, those are some of the moments I think that Target has been at its highest in my 20 years,” he said.

The change in leadership was announced Wednesday at the same time that Target reported another quarter of sluggish results.

The announcement surprised some analysts who expected Target to pick an outsider to turn things around. Neil Saunders, a managing director at GlobalData Retail, said he had mixed feelings.

“While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years,” he said.

Target reported a 21% drop in net income in the quarter ended Aug. 2. Sales were down slightly and the company reported a 1.9% dip in comparable sales — those from established physical stores and online channels. Target has seen flat or declining comparable sales in eight out of the past 10 quarters including the latest period.

Target, which has about 1,980 U.S. stores, has been the focus of consumer boycotts since late January, when it joined rival Walmart and a number of other prominent American brands in scaling back corporate diversity, equity and inclusion initiatives.

Target’s sales also have languished as customers defect to Walmart and off-price department store chains like TJ Maxx in search of lower prices. But many analysts think Target is stumbling because consumers no longer consider it the place to go for affordable but stylish products, a niche that long ago earned the retailer the jokingly posh nickname “Tarzhay.”

In fact, out of 35 merchandise categories that Target tracks, it gained or maintained market share in only 14 during the first half of the company’s fiscal year, Fiddelke said.

Meanwhile, Walmart gained market share among households with incomes over $100,000 as U.S. inflation caused consumer prices to rise rapidly. Lower-income shoppers have driven customer growth at Target, suggesting it may have lost appeal with wealthier customers, according to market research firm Consumer Edge.

“It’s probably not the best sign, especially because higher-income consumers continue to hold up a little bit better” during times of economic uncertainty, said Consumer Edge Head of Insights Michael Gunther.

In March, members of Target’s executive team told investors they planned to regain the chain’s reputation for selling stylish goods at budget prices by expanding Target’s lineup of store label brands and shortening the time it took to get new items from the idea stage to store shelves. The moves would help the company stay close to trends, executives said.

“In a world where we operate today, our guests are looking for Tarzhay,” Cornell told investors. “Consumers coined that term decades ago to define how we elevate the everything everyday to something special, how we had unexpected fun in the shopping that would be otherwise routine.”

Before joining Target in 2014, Cornell, 66, spent more than 30 years in leadership positions at retail and consumer-product companies, including as chief marketing officer at Safeway Inc. and CEO at Michaels, Walmart’s Sam’s Club and PepsiCo America Foods. In September 2022, the board extended his contract for three more years and eliminated a policy requiring its chief executives to retire at age 65. When Fiddelke takes over, Cornell will transition to be executive chair of the board.

When he got to Target, the company was facing a different set of challenges.

Cornell replaced former CEO Gregg Steinhafel, who stepped down nearly five months after Target disclosed a huge data breach in which hackers stole millions of customers’ credit- and debit-card records. The theft badly damaged the chain’s reputation and profits.

Cornell reenergized sales by having his team rev up Target’s store brands. It now has 40 private label brands in its portfolio. And even before the pandemic, Cornell spearheaded the company’s mission to transform its stores into delivery hubs to cut down on costs and speed up deliveries.

Target’s 2017 of Shipt helped bolster the discounter’s same-day, store-based fulfillment services. Cornell also focused on making its stores better tailored to the local community

The coronavirus pandemic delivered outsized sales for Target as well as its peers as stayed home and bought pajamas, furnishings and kitchen items. And it continued to see a surge in sales as shoppers emerged from their homes and went to stores. But the spending sprees eventually subsided.

As inflation started to spike, Target reported a 52% drop in profits during its 2022 first quarter compared with a year earlier. Purchases of big TVs and appliances that Americans loaded up on during the pandemic faded, leaving the retailer with excess inventory that had to be sold off.

In July 2023, as shoppers feeling pinched by inflation curtailed their spending, Target said its comparable sales declined for the first time in six years.

Moreover, Target started losing its edge as an authority on style by focusing too much on home furnishings basics, and not enough trendy items, Fiddelke said.

A customer backlash over the annual line of LGBTQ+ Pride merchandise  carried that year further cut into sales.

Although Walmart retreated from its diversity initiatives first, Target has been the focus of more concerted consumer boycotts. Organizers have said they viewed Target’s action as a greater betrayal because the company previously had held itself out as a champion of inclusion.

Home Depot Q2 sales rise but miss Wall Street forecast

Summary

  • Q2 revenue rose to $45.28B, below $45.41B forecast
  • Comparable store sales rose 1% overall, 1.4% in U.S.
  • Consumers shift toward smaller projects
  • Company warns of modest price hikes from rising

‘s sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns and economic uncertainty, but its performance missed Wall Street’s expectations.

The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of rising tariff costs, though they won’t be broad-based. Company executives told analysts during the earnings call after the results were released that more than 50% of its products are sourced domestically and wouldn’t be subject to any tariffs.

In May, Home Depot said it didn’t expect to raise prices because of tariffs, saying it had spent years diversifying the sources for the goods on its shelves.

But Billy Bastek, executive vice president of merchandising at Home Depot, told analysts on Tuesday that tariff rates are significantly higher than they were when it released earnings results in May.

“Our customers tend to shop for the entire project, ” Bestek said. “And you think about a small flooring project, tile grout, bath tub and vanity and a bath project. And so we’re laser focused on protecting the cost of the entire project.”

Revenue for the three months ended August 3 climbed to $45.28 billion from $43.18 billion, but fell short of the $45.41 billion that analysts polled by FactSet were looking for.

Sales at stores open at least a year, a key indicator of a retailer’s health, rose 1%. In the U.S., comparable store sales increased 1.4%.

Home Depot’s stock surged more than 3% in Tuesday afternoon trading.

Neil Saunders, managing director of GlobalData, said that Home Depot saw consumers concentrating on smaller projects and gardening during the quarter.

“As the largest improvement player, Home Depot is getting the lion’s share of this growth and remains the number one destination for consumers due to strong customer service, a comprehensive range, and sharp pricing,” he said. “The latter factor will serve it well as consumers become more price conscious.”

Customer transactions declined less than 1% in the quarter. The amount shoppers spent rose to $90.01 per average receipt from $88.90 in the prior-year period.

“Our second quarter results were in line with our expectations,” Chair and Ted Decker said in a statement. “The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects.”

Home improvement retailers like Home Depot have been dealing with homeowners putting off bigger projects because of increased borrowing costs and lingering concerns about inflation.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows.

Sales of previously occupied homes have slumped as elevated mortgage rates and rising prices discourage home shoppers.

Sales of such homes in the U.S. slid in June to the slowest pace since last September as mortgage rates remained high and the national median sales price climbed to an all-time high of $435,300.

Home sales fell last year to their lowest level in nearly 30 years.

Home Depot earned $4.55 billion, or $4.58 per share, for the second quarter. A year ago, the Atlanta-based company earned $4.56 billion, or $4.60 per share.

Removing certain items, earnings were $4.68 per share. Wall Street was looking for earnings of $4.72 per share.

The company reaffirmed its fiscal 2025 forecast for total sales growth of about 2.8%. It still expects adjusted earnings to decline about 2% from $15.24 per share a year earlier.

FTC alleges Maryland reseller marked up tickets, including for Taylor Swift concerts

Summary

  •  filed suit against a Pikesville-based ticket reseller in Maryland .
  • Company allegedly resold nearly 400,000 tickets using fake IP addresses and other methods.
  • FTC claims violations of the Better Online Ticket Sales (BOTS) Act.
  • Resellers say they do not use bots and do not violate ‘s rules.

The Federal Trade Commission on Monday sued a Pikesville-based ticket reseller, alleging it illegally bought and marked up nearly 400,000 event tickets, including to concerts on Taylor Swift’s Eras Tour.

The FTC alleges that Key Investment Group, the company’s principals and related businesses used thousands of Ticketmaster accounts and credit card numbers, fake and proxy IP addresses, and other methods to buy at least 379,776 tickets in about a year.

It alleges that they bought $57 million worth of tickets in just over a year and sold “a portion” of them for $64 million, in violation of the Better Online Ticket Sales Act, or BOTS Act, which seeks to prevent resellers from using bots to circumvent ticket platforms’ security measures.

The trade regulator sued in Maryland , naming as defendants Key Investment Group, TotalTickets.com, Totally Tix, Front Rose Tix, WLK Investments, Key Investment Group Yair Rozmaryn, CFO Elan Rozmaryn and chief strategy officer Taylor Kurth.

“Defendants’ actions have injured consumers, who otherwise may have been able to purchase those tickets in the first instance from Ticketmaster at a lower price,” the lawsuit states.

“Today’s action puts brokers on notice that the -Vance FTC will police operations that unlawfully circumvent ticket sellers’ purchase limits, ensuring that consumers have an opportunity to buy tickets at fair prices,” FTC Chairman Andrew Ferguson stated in a news release.

Ferguson noted an executive order by President Donald Trump that seeks to ban  in the  industry.

Ticketmaster did not respond to a request for comment.

Bezalel Stern, a partner at Manatt, Phelps & Phillips in , D.C., is representing Key Investment Group, the Rozmaryns and Kurth. Stern did not answer a phone call on Tuesday.

Among the allegations is that from March to August 2023, the defendants purchased 2,280 tickets to 38 Taylor Swift concerts. They paid $744,970 and resold the tickets for $1,961,9801.

A month ago, Key Investment Group preemptively sued Ferguson and other members of the FTC in an attempt to challenge the BOTS Act as applied. The lawsuit seeks declaratory judgment and injunctive relief, arguing that the BOTS Act is unconstitutionally vague as applied to the company.

“In order for their business model to make sense, Plaintiffs — and the rest of the legitimate secondary-ticket market — use multiple accounts to secure tickets,” the complaint states.

“Many other companies, businesses, and individuals also use multiple accounts to secure tickets. Defendants’ position is that any individual or company who uses more than one account to purchase tickets from a primary ticket seller, such as Ticketmaster, violates the BOTS Act.”

The complaint states that the ticket resellers do not use bots and do not violate Ticketmaster’s rules. It says Ticketmaster does not “enforce posted event ticket purchasing limits” or “maintain the integrity of posted online ticket purchasing order rules.”

“A violation of the BOTS Act requires the use of bots,” it adds. “Plaintiffs do not use bots.”

U.Va. medical school names interim dean

The and leadership last week announced will soon be its interim of the U.Va. School of Medicine.

He is succeeding , who is leaving as dean effective Sept. 3. Kibbe is the sole finalist for the presidency of the University of Texas Health Science Center at Houston, also known as UTHealth Houston. Last year, Kibbe and then-UVA Health Dr. K. Craig Kent were the subjects of a no confidence vote by 128 UVA Health physicians, who called for the two leaders’ resignations. Kent resigned in February, following a closed-session meeting of the U.Va. Board of Visitors.

U.Va. also announced that Dr. Howard Goodkin, former chair of U.Va.’s neurology department, will serve as Derdeyn’s senior adviser for a period of six months.

Derdeyn received his undergraduate and medical degrees from U.Va. After serving in various clinical and leadership roles at University of Iowa and Washington University School of Medicine/Barnes Jewish , he returned to his alma mater in January 2024 as chair of radiology and medical imaging.

“I will work to build trust, listen to all voices and ensure diverse perspectives are represented in our decisions,” Derdeyn said in a statement addressed to his colleagues. “ Our success depends on harnessing the strengths of every department and discipline. We face real challenges in the months ahead — recruitment, funding pressures, and the need to maintain momentum in a time of change — but I believe our extraordinary and our dedication to all our missions will carry us forward. Together, we can strengthen our foundation today and position ourselves for lasting success.”

The -based medical school enrolls 156 students each year.

Virginia Chamber appoints interim CEO

The Virginia Board of Directors announced on Tuesday that it has appointed former chamber executive as interim president and , effective Sept. 2.

The announcement comes after former chamber President and CEO Cathie J. Vick resigned unexpectedly after only four months on the job.

Martin will lead the chamber — Virginia’s largest business advocacy organization with more than 30,000 members — while its board conducts a nationwide search for a permanent president and CEO. Additionally, Martin will assume the role of executive vice president of public policy and government relations, overseeing the chamber’s policy and advocacy agenda.

“Keith is a proven leader with deep relationships across the business community, policymakers, and chambers throughout Virginia,” said board chair Linda Stanley in a statement, adding that the chamber’s board has “full confidence” in Martin’s ability to guide the chamber during the transition.

Martin has more than 20 years of experience in public policy and business advocacy, including a previous tenure working for the from 2011 to 2024 as executive vice president of public policy and general counsel, as well as executive director of the Virginia Chamber Foundation. According to his LinkedIn profile, he is currently director of government relations for Appalachian Power and previously served as a policy director for the Virginia Department of Transportation.

The chamber said Martin helped shape the chamber’s public policy recommendations, including significant contributions to three editions of Blueprint Virginia, the state’s comprehensive business plan. He also successfully managed the chamber’s legislative agenda through multiple General Assembly sessions.

“I am honored to return to the Virginia Chamber and to serve in this leadership role during such a critical time,” said Martin in a statement. “I look forward to working with the board, [the chamber] team and our members to advance the chamber’s mission and strengthen Virginia’s position as the best state for business.”

Martin has a law degree from Thomas Cooley Law School and both bachelor’s and master’s degrees from .

TowneBank to acquire N.C. bank for $476M

  • to acquire in $475 million deal, closing early 2026
  • Combined assets to reach around $22 billion
  • TowneBank’s workforce will grow from 2,800 to about 3,000 employees

-based TowneBank announced Tuesday that it has signed an agreement to acquire -based Dogwood State Bank for about $475 million.

The move, approved by the boards of both companies, will expand TowneBank’s presence down the fast-growing Interstate 85 corridor from , Greenville, North Carolina and the upstate region of South Carolina. The transaction is expected to close in early 2026, pending regulatory approval and the approval of Dogwood’s shareholders.

Meanwhile, TowneBank is expected to close its $203 million acquisition of Old Point National Bank of Phoebus and its parent company, Old Point Financial Corp., on Sept. 1. With that purchase and the Dogwood , the combined bank’s total assets will reach close to $22 billion, loans of roughly $16 billion and deposits of about $19 billion.

Dogwood Steve Jones will join TowneBank as president of its North Carolina and South Carolina operations, and be a member of the TowneBank corporate management team.

“It has been my pleasure to know Steve for a number of years and we have always admired the great job he and his team have done building Dogwood State Bank. We are excited to have Steve and his talented teammates join hands and hearts with our Towne family to take our Main Street Bank forward in the fast-growing North Carolina and South Carolina markets,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement.

Aston told the acquisition will increase TowneBank’s number of employees from about 2,800 to around 3,000. He said most of Dogwood’s employees will still be employed after the merger, although said there would be some consolidation, including 10% or less of the Dogwood workforce.

Jones said Dogwood State Bank’s director, Robin Perkins, will join the TowneBank corporate board of directors after the merger is completed.

“Today marks an exciting new chapter for our company,” Jones said in a statement. “After thoughtful consideration, we have agreed to join forces with TowneBank, whose vision and values align closely with our own. This partnership will bring new opportunities for our customers, employees, and shareholders, while building to the legacy we’ve created at Dogwood.”

Under the terms of the merger agreement, TowneBank states that common shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share of Dogwood common stock. This implies a deal value per share of $25.04 or approximately $476.2 million based on TowneBank’s 15-day average closing stock price of $35.77 on Aug. 18.

Founded in 1999, TowneBank has 58 locations across Central and Eastern Virginia and North Carolina. It had total assets of $17.25 billion as of Dec. 31, 2024.

Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.4 billion in total assets as of June 30. Dogwood has 17 branch offices in North Carolina, South Carolina and Eastern Tennessee.

Nexstar Media Group buying Tegna in deal worth $6.2 billion


Summary

  • Media Group to acquire for $6.2 billion
  • Deal includes $22 cash per share for Tegna stockholders
  • Merger expands Nexstar’s 200+ stations across 116 markets
  • Nexstar also operates The CW and NewsNation networks

Nexstar Media Group is buying -based broadcast rival Tegna for $6.2 billion, which will help strengthen its offerings.

The transaction, if approved, will bring together two major players in U.S. and the country’s local news landscape. Nexstar oversees more than 200 owned and partner stations in 116 markets nationwide today and also runs networks like The CW and NewsNation. Meanwhile, Tegna, which was formed in 2015  when Gannett Co. spun off its and digital business, owns 64 television news stations across 51 markets.

“The initiatives being pursued by the administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources,” Nexstar Chairman and Perry Sook said in a statement on Tuesday. “We believe Tegna represents the best option for Nexstar to act on this opportunity.”

Nexstar said Tuesday that the deal will also help it give advertisers a bigger variety of local and national broadcast and digital advertising options.

Nexstar will pay $22 in cash for each share of Tegna’s outstanding stock.

The deal could potentially help kick off even further consolidation in America’s broadcast industry. Nexstar, founded in 1996, has itself grow substantially with over the latest two decades, becoming the biggest operator of local TV stations in the U.S. after it purchased Tribune Media back in 2019.

Nexstar’s purchase of Tegna also arrives amid wider regulatory shifts. Brendan Carr, the Trump-appointed chairman the Federal Communications Commission, which will need to give the transaction the green light, has long advocated for loosening industry restrictions. On Aug. 7, the FCC announced that it would be repealing 98 broadcast rules and requirements that it identified as “obsolete, outdated, or unnecessary.”

Some of those rules date back nearly 50 years, the FCC said, and apply to “old technology that is no longer used.” Carr maintained that such provisions no longer serve public interest.

In late July, the U.S. Court of Appeals for the Eighth Circuit also vacated the FCC’s “top four” rule, which has long prohibited ownership of more than one of the top four stations in a single market. The ruling is still subject to a monthslong assessment by the FCC, but could significantly clear the way for future mergers in the industry.

In company earnings calls held in early August, before Tegna and Nexstar publicly confirmed merger talks, both Tegna CEO Michael Steib and Nexstar’s Sook pointed directly to this ruling, and applauded Carr’s deregulation agenda as a whole.

“We believe that deregulation is necessary, important and coming,” Steib said in Tegna’s Aug. 7 call, noting that local broadcasters are “up against big tech competitors who have absolutely no encumbrances in how they compete.”

Beyond their core broadcast TV businesses, both Nexstar and Tegna also boast digital news, mobile app and streaming offerings, all of which have played key roles for the industry as consumers change the way they consume news and other .

Broadcast TV has been hit particularly hard by “cord-cutting,” with more and more households trading their cable or satellite subscriptions into content they can get via the internet.

The deal is expected to close by the second half of 2026. It still needs approval from Tegna shareholders.

Shares of Nexstar jumped 7.6% in premarket trading, and Tegna’s rose 4.3%.

VCU Health plans to add 16-story hospital tower

At its downtown medical center campus in , the System hopes to soon construct a major tower that would eventually be 16 stories tall and feature 576 beds.

The health system has recently issued requests for proposals for both project management services and architectural and engineering services related to the project, to be located at the corner of East Leigh and North 12th streets.

The first phase of the project would involve building a tower eight stories above grade, featuring 240 beds, 10 operating rooms and one procedure room, supported by 28 prep, recovery and post-anesthesia care unit rooms, according to the .

The site plan for VCU Health’s planned new medical facility. Image Courtesy VCU Health

It would also include the of a 73,500-square-foot central utility plant, north of Leigh Street and adjacent to the VCU School of Nursing. The three-story facility would heat and cool the new hospital tower, as well as house equipment for building utilities and services.

The project’s second phase would bring the new hospital facility to 16 floors above grade and add 336 beds.

To make room for the new building, VCU Health plans to relocate and demolish its Health Sciences Library, the Strauss Research Building and an 800-space visitor parking deck.

The deadline to respond to the project management services request was July 15, while the deadline to reply to the A&E services RFP is Wednesday. Both contracts are expected to be awarded in November.

The health system’s vision statement for the project says the new patient tower “will serve the community and be a destination for high acuity specialized care. Organized around service line excellence, this new tower will provide resources for advanced education and research, expanding our local and national reach as the preferred academic health system.”

A preliminary timeline for the project, as outlined in the RFP, calls for the design phase to occur between 2026 and 2028, with construction to occur from 2027 to 2032 and occupancy to begin in 2032 or 2033.

“While we are still in the planning phase, this effort reflects our broader commitment to increasing access and better serving the of the commonwealth through thoughtful, long-term investment in the health of our communities,” said VCU Health spokesperson Danielle Pierce in a statement.

Based in Richmond, VCU Health has more than 800 physicians. It reported $3.54 billion in revenue for the 2023-2024 year, with net income of $442.5 million

Wellmore to lay off 72 coal workers in Southwest Virginia

  

SUMMARY:  

• to lay off 72 workers in Southwest Virginia
• to impact , Hurley, and Big Rock operations in Buchanan County
• Job cuts begin Sept. 6 and continue through mid-October

Wellmore Energy Co., a company, plans to lay off 72 workers in Buchanan County, according to notices sent to the state in compliance with the Worker Adjustment and Retraining Notification (WARN) Act.

A subsidiary of , a Tennessee-based metallurgical coal company, Wellmore’s operations include two company-operated underground mines, one company-operated surface mine, seven contract mines, three shops, two preparation plants, rail-loading facilities, a lab and an administration office, according to United Coal’s website.

In a notice dated July 7, which the state received July 8, Gary Prater, a human resources director for United Coal Co., stated that six Wellmore Energy Co. employees who work at a surface minerals operation in Grundy are expected to lose their jobs

In a second letter dated July 7, which the state received Aug. 4, Prater stated 27 employees are expected to be laid off at Wellmore’s Elk Creek Operation in Hurley. The 33 employees at the two locations are all expected to lose their jobs beginning Sept. 6, with all separations completed by Sept. 19.

In a third notice dated Aug. 4, which the state received the same day, Tammy Fields, a human resources representative for United Coal Co., stated Wellmore expects to lay off 39 employees from the surface minerals operation in Grundy and a preparation plant in Big Rock. Those employees are expected to lose their jobs beginning Oct. 4 with separations completed by Oct. 16.

Employees will not have bumping rights to another position and are not represented by a union, according to the notices.

A page on the Virginia Department of Workforce Development and Advancement and Enforcement, also known as Virginia Works, which posts layoff notices received by the state reports that 17 Wellmore Energy Co. employees in Big Rock will lose their jobs with an impact date of Oct. 4 and that 27 Wellmore Energy Co. employees in Hurley will lose their jobs with an impact date of Sept. 6.

A request for comment to United Coal Co. was not immediately returned Monday.

In May, S&P Global, a New York-based market intelligence firm, described the metallurgical coal market as weak due to “low steel demand, exacerbated by recent uncertainty around global trade policy.”

Pennsylvania-based Core Natural Resources, a producer and exporter of coals, including metallurgical and high calorific value thermal coals, in June informed 200 workers in Wyoming County, West Virginia that they’d be losing their jobs in August.

Wellmore produces approximately 1.8 million tons of coal, according to United Coal’s website. Metinvest Group, a mining and steel company based in Ukraine, bought United Coal in 2009.