The decision by Stock Building Supply, America's second-biggest LBM operation, to close its Phoenix operations provides the final piece to the company's plans to depart six states and 16 markets as part of a huge rightsizing effort.
Stock, a Raleigh, N.C.-based unit of Britain's Wolseley Plc, announced Oct. 23 that it will close 86 branches, lay off 3,000 workers and exit 16 markets, leaving it at little more than half the size it was at the market's peak. At that time, it didn't give a full list of the places it would leave. But with the news it would close five facilities in Phoenix--a lumberyard, a framing shop, a door and trim operation, a concrete facility, and a commercial and custom division, all within a block of each other.--and lay off 123 workers by Jan. 18, the complete list of closings now is clear.
According to a Dec. 12 e-mail from a Stock spokesperson, the company is leaving these six states:
In addition, Stock confirmed it will leave the following markets. (Locations from which Stock says it can still deliver goods to those markets are listed in parentheses.)
- Phoenix, Ariz.
- Bakersfield, Calif. (Los Angeles)
- Santa Barbara, Calif. (Los Angeles)
- San Bernardino, Calif. (Los Angeles)
- Dover, Del. (Pennsylvania or New Jersey)
- Fort Myers, Fla. (Plant City, Fla.)
- Jacksonville, Fla. (Plant City, Fla.)
- Panama City, Fla. (Plant City, Fla.)
- Pompano, Fla. (Homestead, Fla.)
- Lexington, Ky. (Louisville or Sellersburg, Ky.)
- Gulf Coast, La.
- Grand Rapids, Mich.
- Reno, Nev.
- Yerington, Nev.
- Cincinnati, Ohio
- Mission, Texas
There also have been several closures of individual facilities in recent months that come on top of the market and state departures. All have been confirmed by Stock. Those locations (and the continuing operations from which Stock says it can still provide service) are:
- Four units in Boise (Salt Lake City), Pocatello (Idaho Falls, Idaho), and Coeur d'Alene, Idaho
- Racine, Wis. (Sussex or Delevan, Wis.)
- Baxter, Montrose and Cedar, Minn. (Eagan, Minn.)
- Chicago (Elgin or Carol Stream, Ill.) and St. Charles, Ill.
- Summerville (Charleston, S.C.). Anderson (Greenville, S.C.), Florence (Middlesex or Gaston, S.C.), and Pawleys Island, S.C. (Conway, S.C.)
On Nov. 18, Wolseley reported that Stock incurred an operating loss of around $60 million in its fiscal first quarter ended Oct. 31. That operating loss came on a 20% decline in sales and was 10 times worse than it posted in the year-earlier quarter.
Stock ranks No. 2 on the 2008 ProSales 100 list of America's largest LBM operations, with sales of $4.71 billion in 2007, 94% of them to pros.