Appliance Distributors Inc., commonly known as ADI, is shutting down operations at the end of this year just months after opening a second store at Hamburg.
President Wade Kundinger said the company has suffered from a slowdown in construction business. ADI had purchased appliances for a number of construction projects that stalled or were canceled, he said, and has been unable to sell the products. Other customers have passed on them, he said, because they were lower-end appliances purchased for apartment complexes.
"It's just the overhead of having all the other merchandise in the warehouse," he said in explaining ADI's closing. "That's really the bottom line. If the building business would pick up 5 to 10 percent, ADI would survive."
The company had recently expanded to its Hamburg location and intended to continue operating its original store at 1701 Jaggie Fox Way to sell discontinued, scratched and dented models.
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Instead, in the coming week, employees are moving all of the inventory at Hamburg back to Jaggie Fox Way for a final sale.
Vice President Rebecca Kundinger said the sale will run through the end of the year, and the company will honor gift cards for those purchases.
"We really appreciate all the local support we've had over the years and being a part of the community," she said.
Warranties on appliances purchased at ADI are handled through the manufacturers, Rebecca Kundinger said. Customers in need of repair should call the phone numbers in their warranty information packets, and the manufacturers will arrange for service companies to handle the requests. ADI operated a service company but ceased doing so at the end of November.
Wade Kundinger said ADI has a couple of potential buyers for its Jaggie Fox Way property. The company leased its Hamburg location from the owners of former occupant Capel Rugs, which moved back to the Southland Drive area.
Brenda Huff, who owns Capel Rugs with her husband, Grover, said they already have a couple of people interested in the Hamburg store.
ADI's closing later this year will leave Lexington with one fewer locally owned appliance store.
Among those remaining are Pieratt's and Appliance Pro.
"As a local family-owned independent business, it always saddens us to see a fellow independent business struggle and not be able to make it in today's climate," said Michael Cox, director of marketing for Pieratt's.
And while many locally owned businesses have closed due to retail chain competition, Wade Kundinger said that wasn't the case for ADI.
"It was just economics and the slowdown in the building business," he said. "That's what ADI's bread and butter was. That slowdown eventually just took its toll."