By Craig Webb
Now that The Gores Group has taken a 51% interest in Stock Building Supply, Stock's revival plan depends in large part on whether it can get out from lease payments it is making on scores of facilities that it has closed or planned to close since 2006.
Indeed, in the fiscal year ended July 31, 2008, $430 million of the $744 million in operating losses that Stock incurred were for restructuring and impairment provisions. Stock's Chapter 11 filings note that the Gores Group's investment in Stock on May 5 was contingent on Stock filing for protection from creditors, largely to win the U.S. Bankruptcy Court's approval to cancel the leases on the closed locations.
Stock asked the court to reject at least 210 leases. Filings made to the court reveal more than 150 agreements with various counterparties for leases that extend as far into the future as 2021. In Wilmington, Del., U.S. Bankruptcy Judge Mary F. Walrath has scheduled a hearing at 10:30 a.m. ET May 28 to consider rejecting those leases.
Here is a spreadsheet listing all the locations on the map. Descriptions of the facilities are based primarily of Stock's descriptions included in a database of its locations as of late December 2008. Qualifying footnotes are below.
In addition, ProSales' blog contains a map showing the locations of all leases that Stock has indicated in its Chapter 11 filings that it would like the bankruptcy court to reject.
(1) -- Facility had been subleased. Stock also seeks to terminate the sublease.
(2) -- No listing of a facility here on Stock's locations list since before Christmas. There is a lumberyard at 1000 Warm Springs Rd. in Ketchum
(3) -- No listing of a facility here on Stock's locations list since before Christmas. There is a lumberyard listed as the Park City facility at 1185 W. Lori Lane, Kamas, UT
(4) -- Stock's list shows a site at 4220 West White Rd. The lease agreement shows it to be at 1220.
(5) -- Stock's map shows this to be at 7708 Burwell Rd.
(6) -- Stock's map shows this to be at 4800 Recker Highway
(7) -- Stock's map shows this to be at 1716 Husted Rd.
(8) -- Stock's map shows this to be at 4327 J.P. Hall Blvd.
(9) -- Stock's map shows this to be at 5178 Horry Drive
(10) -- One lease at Orange Show Rd. is to M&D Johnson LLC, the Other is to M&D Johnston Partnership
(11) -- Stock's map has this at 39531 N. 15th St. East
(12) -- Leases here are for 6203, 6209, 6202, 6206, 6210 and 6214 Clarity Court Buidling 2 and 3
(13) -- Court filing lists the termination date 2002. Could actually be 2012.