Stock Emerges from Chapter 11 with Focus on 19 Markets
Stock Building Supply Holdings LLC announced last week it had successfully completed its financial restructuring and has emerged from Chapter 11. The company’s plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on June 15, 2009.
“This is a great day for Stock. We are emerging with the strongest balance sheet and financial foundation of any of our competitors. We are re-focused on our core markets and well positioned for the upturn in the housing market,” said Joe Appelmann, Stock Building Supply president. “We are pleased to have completed our recapitalization on an accelerated timeline while meeting the commitments we made to our customers, vendors and employees; none of whom were impaired as part of the bankruptcy process. It is thanks to the hard work of our associates and the loyalty of our customers and vendors that we remain one of the leading suppliers of building materials to professional home builders and contractors. We look forward to partnering with our customers and continuing to meet their needs in the coming months and years.”
After closing operations numerous operations while under Chapter 11 protection, the company is now focused on 19 core markets, which represent its strongest prospects for growth, according to company officials. These 19 markets include: Washington, D.C.; Paradise, Pa.; Richmond, Va.; Raleigh-Durham, Charlotte and Winston-Salem/Greensboro, N.C.; Greenville and Columbia, S.C.; Atlanta, Ga.; Austin, Amarillo, Houston, Lubbock and San Antonio, Texas; Albuquerque, N.M.; Salt Lake City and Southern Utah; Spokane, Wash./Northern Idaho; and Los Angeles, Calif.
“We believe the decisions made over the past several weeks have put the company on a path for success,” said Timothy Meyer, chairman of Stock and managing director of The Gores Group, Stock’s majority owner. “The proactive steps Stock has taken to address the issues facing our business and the entire homebuilding industry will eliminate uncertainty about our future, an uncertainty that many of our competitors continue to face. We appreciate the support of our loyal customers and their belief in the strength of the Stock management team and our dedicated and knowledgeable associates. Stock is committed to being highly competitive in the markets in which it operates. As a result of recent actions, we’re confident the company is now well positioned to operate profitably in the current environment and capitalize on its full potential.”
Per the terms of the original transaction, and following completion of the recapitalization, Gores has invested $75 million in the company and put in place a $150 million undrawn bank credit facility. The resulting balance sheet and financial stability puts Stock in a strong go-forward position, officials report.