Business

Stock Building Supply emerges from bankruptcy

Posted July 1, 2009 9:03 a.m. EDT

— Stock Building Supply, a smaller and leaner company with a focus on 19 markets, has emerged from bankruptcy protection.

“This is a great day for Stock,” said company president Joe Appelmann in a statement.

“We are emerging with the strongest balance sheet and financial foundation of any of our competitors,” he added. “We are re-focused on our core markets and well positioned for the upturn in the housing market.”

A bankruptcy court in New Jersey approved Stock’s reorganization plan two weeks ago.

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.

On May 6, the Gores Group, a private equity firm based in California, purchased 51 percent ownership of Stock from Wolseley PLC. As part of the deal, Gores Group has poured $75 million into Stock. Gores also has provided a credit line of $150 million.

Wolseley decided to sell Stock as the new home building market in the U.S. melted last year.

Stock has slashed its workforce and closed numerous operations since filing for bankruptcy. It recently closed operations in Fayetteville and Wilmington.

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.

The 19 markets where Stock plans to focus its efforts are:

• The Research Triangle
• Charlotte
• The Triad
• Greenville, S.C.
• Columbia, S.C.
• Atlanta
• Washington, D.C.
• Paradise, Pa.
• Austin, Texas
• Amarillo, Texas
• Houston, Texas
• Lubbock, Texas
• San Antonio, Texas
• Albuquerque, N.M.
• Salt Lake City and southern, Utah
• Spokane, Wash. and northern Idaho
• Los Angeles