Stock Building Supply to close stores in Fayetteville, Wilmington
Posted May 29, 2009 4:38 p.m. EDT
Raleigh, N.C. — Stock Building Supply, which recently was acquired by a private equity firm and declared bankruptcy in order to reorganize, is closing stores in Fayetteville and Wilmington, N.C.
A spokesperson for Stock, one of the world’s largest home building supply providers, confirmed the closings following an inquiry by WRAL.com.
However, the company declined to disclose how many employees were affected. Stock also would not say how many people still worked for the home building supply firm in the Raleigh area.
As of early May, Stock employed some 1,400 people in North Carolina, including 930 in the Triangle. On May 15, Stock announced 2,000 job cuts nationwide.
“We are leaving Fayetteville and Wilmington,” the spokesperson said. “Our preference is to sell those locations. If we do not, there will be an orderly wind down.”
Stock also issued a statement about the closings and others that might be made:
“As previously disclosed, Stock Building Supply will be closing stores in select under-performing markets. We regret having to make these cuts and understand that this is a challenging time for our associates. Nevertheless, these difficult decisions are necessary to focus on those markets with the strongest prospects for growth and to ensure Stock is well-positioned for the housing market upturn. We are committed to ensuring a smooth transition for our valued customers at these affected locations and look forward to continuing to provide high quality products and services to customers nationwide.”
On May 6, the Gores Group, a private equity firm based in California, purchased 51 percent ownership of Raleigh-based Stock from Wolseley PLC. As part of the deal, Gores Group is pouring $75 million into Stock.
Wolseley decided to sell Stock as the new home building market in the U.S. melted last year. The U.K. based company retains 49 percent ownership and also will provide $100 million in financing to Stock.