Stock Building Supply's Ch. 11 bankruptcy protection filing was a picture of what many in its sector have gone through since the housing market has fallen from its peak nearly four years ago.
Stock Building Supply's filing in support of bankruptcy protection outlines UK-based Wolseley's decision to exit the struggling Raleigh, NC-based building materials distributor. In its fiscal year ended July 31, 2008, Stock recorded a $744 million loss. It had $3.5 billion in sales. The distributor filed for Ch. 11 bankruptcy protection May 6, 2009.
James Major, vice president, finance and strategic planning, wrote that single-family housing starts had dropped by more than 80 percent since their peak in 2005. In addition, declining lumber and panel ...
As part of its filing for Ch. 11 bankruptcy protection, Raleigh, NC-based Stock Building Supply will slash an additional 2,220 jobs and close more locations. According to a court filing, the distributor will reject 210 leases where the company has already ceased or plans to cease operations. That number could grow.
In its fiscal year ended July 31, 2008, Stock recorded a $744 million loss. It had $3.5 billion in sales. The distributor filed for Ch. 11 bankruptcy protection May 6, 2009.
The company reported in its filing that it will retain 5,000 jobs, down from 7,220 who are currently employed.
"Without the restructuring and relief provided by the Plan and the additional investments into the business, Stock likely faces a liquidation, which ...
UK-based building materials distributor Wolseley plc has entered into a joint venture of Stock Building Supply with affiliates of U.S.-based The Gores Group LLC. Wolseley will retain a 49% equity interest. One hundred percent of the shares of Stock will be sold to a new joint venture company called NewCo.
Wolseley will hold two board seats in the joint venture. The distributor will continue to be called Stock Building Supply and will be led by the existing Stock management team, including Joe Appelmann as president.
A pre-packaged Chapter 11 reorganization plan will facilitate the sale, according to the distributor. This allows for all trade creditors to be paid, and according to Wolseley, will create a "substantially lower cost base." Obligations to ...
Wolseley examines options for its beleaguered U.S. building materials business unit, which despite dramatic cost reductions continues to be a significant drag on the group's overall performance.
UK-based distributor Wolseley plc is once again looking to exit its U.S.-based Stock Building Supply operations, this time by Aug. 1, 2009. Even after extensive cost-cutting measures last fall that included reducing headcount by an additional 3,000 and closing 86 branches, the business lost $246 million last year.
Stock Building Supply is heavily reliant on housing starts in the U.S., which declined from around 750,000 in Oct. 2008 to about 460,000 in January.
Enough is enough, John Whybrow, chairman of the board, says in a Webcast ...
UK-based distributor Wolseley plc is once again looking to exit its U.S.-based Stock Building Supply operations with a deadline of Aug. 1, 2009.
Even after extensive cost-cutting measures last fall that included reducing headcount by an additional 3,000 and closing 86 branches, the business lost $246 million last year.
Stock Building Supply is heavily reliant on housing starts in the U.S., which declined from around 750,000 in Oct. 2008 to about 460,000 in January. Enough is enough, John Whybrow, chairman of the board, says in a Webcast on the Wolseley site. "We cannot go on with markets deteriorating like that."
Wolseley said it prefers a joint venture partner for the business, though closing Stock - the worst-case ...
Acknowledging press reports in recent months, UK-based building materials and plumbing/HVAC distributor Wolseley plc has confirmed that it has held "discussions to consider the merits of an issue of new equity."
"Any decisions will be communicated to shareholders through the appropriate channels at the appropriate time," Wolseley said in a press release.
London's Financial Times reported this week that hopes were high that Wolseley would unveil a 1.2 billion pounds rights issue (roughly US$1.5 billion).
Wolseley continues to be burdened by high debt levels. It recently announced its net debt had grown to 3 billion pounds (US$3.7 ...
UK-based global plumbing and building materials distributor reported revenues were up 3% for the first five months ended Dec. 31, 2008. The distributor's half-year results will be announced March 23.
Profit fell 45%.
We continue to act decisively and rapidly in response to the unprecedented market conditions we face, said Chip Hornsby, CEO. Our attention and efforts remain resolutely focused on achieving compliance with our banking covenants, without losing sight that to generate shareholder value we must seek to ensure the business is well positioned to benefit when the markets in which we operate begin to recover. In the meantime, and against this background of declining macro economic activity we continue to implement the actions required to ...
UK-based Wolseley plc, distributor of plumbing and heating products and building materials, reported group sales for the three months ended Oct. 31, 2008, were up 2% from the same period a year ago. Profit was down about 30%.
Results continue to be impacted by the events in the financial markets and weakness in the housing markets. The decline in profit was primarily due to lower profitability in Stock Building Supply and Wolseley UK.
While these results reflect a further deterioration in the business environment in the first quarter it was not unexpected, and, we continue to react swiftly to market conditions with aggressive but measured cost reduction,"said Chip Hornsby, group chief executive. "In these unprecedented circumstances, the key priorities remain ...
Wolseley plc, UK-based distributor of plumbing and heating products and building materials, reported it would not sell Stock Building Supply but instead extensively restructure the U.S. building materials distributor.
The company will close 86 branches, bringing the number down to 209. It will be leaving 16 markets in six states, while leaving a presence in 27 states. And Stock will reduce headcount by 3,000. About 8,700 employees will remain. Stock has cut about 55% of its work force since 2006, its peak.
The 86 branches to be closed represent about 25% of Stock's revenue and 28% of its headcount.
The decision comes after a six-month review of the business.
Chip Hornsby, Group Chief Executive of Wolseley, said: With the ongoing ...
UK-based Wolseley plc has started a fundamental review"of Stock Building Supply's impact on its overall results, which continued to suffer due to the struggling housing market in the U.S. The company may sell the unit.
"We must acknowledge that further large-scale reduction of Stock will inevitably eat into the infrastructure of the business,"said Chief Executive Chip Hornsby. "It is also abundantly clear that conditions in the new residential market will continue to get worse before it gets better so riding out the storm is not an option for us."
Stock posted a trading loss of £123 million (US$227 million) for fiscal year 2008. The magnitude of the of loss masks the strong performances of other members of the group, Hornsby said.