8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K
                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)          February 1, 2001
                                                  ------------------------------

                             PAYLESS CASHWAYS, INC.
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             (Exact name of registrant as specified in its charter)


         DELAWARE                    0-4437                    42-0945849
- --------------------------- ----------------------- ----------------------------
(State or other jurisdiction       (Commission                (IRS Employer
      of incorporation)             File Number)            Identification No.)


800 NW Chipman Road, Suite 5900
P.O. Box 648001
Lee's Summit, Missouri                                  64064-8001
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(Address of principal executive offices)                (Zip Code)



Registrant's telephone number, including area code           (816) 347-6000
                                                   -----------------------------



                                 Not applicable
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          (Former name or former address, if changed since last report)







Item 7.    Financial Statements and Exhibits.

           (c)    EXHIBITS.  The following exhibits are filed herewith:

           99.1   Press Release dated February 1, 2001.

Item 9.  Regulation FD Disclosure.

        On February 1, 2001, the Company issued a press release announcing that
it has seasonally expanded its revolving line of credit. A copy of this press
release is attached as Exhibit 99.1 hereto and incorporated herein by reference.






                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

     Date:  February 1, 2001
                                      PAYLESS CASHWAYS, INC.


                                      By:  /s/ Richard B. Witaszak
                                          --------------------------------------
                                         Richard B. Witaszak, Senior Vice
                                         President - Finance and Chief
                                         Financial Officer

EX-99.1

                                                                  Exhibit 99.1


FOR IMMEDIATE RELEASE
Contact:
Richard B. Witaszak
816-347-6974
webinvestor@payless.cashways.com



                        PAYLESS CASHWAYS, INC. ANNOUNCES
                 INITIATION OF SEASONAL CREDIT FACILITY OVERLINE

KANSAS CITY, MO - February 1, 2001 - Payless Cashways, Inc. (OTC Bulletin Board:
PCSH), a full-line building materials and finishing products company focusing on
the professional builder, remodel and repair contractor, institutional buyer and
project-oriented consumer, today announced that the Company has seasonally
expanded its revolving line of credit with supplemental loan participation from
Hilco Capital, LP.

Effective immediately, borrowing availability under the Company's $260 million
existing line of credit has been increased by 5.6% for a six-month time period.
An additional participation of $15 million by Hilco Capital, LP into the
asset-based loan facility led by Congress Financial Corporation will support the
5.6% advance rate increase through July 31, 2001.

Millard Barron, President and CEO, commented, "We are pleased to attract the
support of another strong financial partner like Hilco Capital, LP to
participate in our facility. This new investment reinforces our vendors' and our
associates' confidence in our business. The seasonal overline will provide us
additional flexibility to fund vendor payables as we increase inventories of key
products in preparation for our strongest selling season. The expanded line also
will be used to fund working capital requirements during the Company's
traditionally slow winter season."

Payless Cashways, Inc. is a full-line building material and finishing products
company focusing on the professional builder, remodel and repair contractor,
institutional buyer and project-oriented consumer. The Company operates 128
retail stores and 7 Builders Resource facilities in 17 states located in the
Midwestern, Southwestern, Pacific Coast and Rocky Mountain areas. The Company
also operates 12 distribution and manufacturing facilities in 7 states. The
retail stores operate under the names Payless Cashways, Furrow, Lumberjack, Hugh
M. Woods Knox Lumber, Contractor Supply.

Forward-Looking Statements

Forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. There are certain
important factors that could cause results to differ


materially from those anticipated by the forward-looking statements made above.
These statements are based on the current plans and expectations of the Company.
Investors are cautioned that all forward-looking statements involve risks and
uncertainty. Among the factors that could cause actual results to differ
materially are the following: commodity prices; the strength of the commercial
real estate market, competitor activities; interest rates; supplier support;
stability of customer demand; stability of the work force; consumer spending and
debt levels; new and existing housing activity; product mix; growth of certain
market segments; weather; an excess of retail space devoted to the sale of
building materials; and continued vendor and financial institutional support.
Additional information concerning these and other factors is contained in the
Company's SEC filings, which are available by contacting the Company or on the
Company's website, payless.cashways.com.

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