Stock Building Supply revealed that several days before it emerged from Chapter 11 the company slashed 81 jobs at its Raleigh, N.C. headquarters.
The dealer's job cuts occurred on June 26 and were reported in a Worker Action and Retraining Notification posted Tuesday with the North Carolina Department of Commerce.
A letter sent to the department, and obtained by ProSales, states that the layoffs will be "permanent" as of Aug. 26.
The letter also lists jobs cut by Stock ranging from accountants and human resources positions to installed sales managers, payroll managers and a vice president of purchasing position.
The No. 2 LBM company on this year's ProSales 100 had its reorganization plan approved in U.S. Bankruptcy Court in Wilmington, Del. on June 15 and emerged from bankruptcy protection on July 1.
Stock filed for Chapter 11 bankruptcy on May 6, one day after Wolseley Plc sold 51% control of the dealer to The Gores Group, a private equity firm based in Los Angeles. During its time in bankruptcy, Stock won court approval to reject more than 250 leases, most of them for properties it has closed since mid-2006.
The company is now focused on 19 core markets: the Washington, D.C., area; Paradise, Pa.; Richmond, Va.; Raleigh-Durham, Charlotte and Winston-Salem/Greensboro, N.C.; Greenville and Columbia, S.C.; Atlanta; Austin, Amarillo, Houston, Lubbock and San Antonio, Texas; Albuquerque, N.M.; Salt Lake City and Southern Utah; Spokane/Northern Idaho, and Los Angeles. Stock also said will continue to operate its commercial, flooring and roofing business units.
At its peak, Stock had more than 17,000 employees but slimmed down to roughly 7,200 workers as of this past May. At the same time, Stock cut the number of facilities it had on May 6 roughly in half, to 100, and eliminated an undisclosed number of headquarters and administrative staff. In all, Stock departed 32 markets, the company said.
Stock predicts its net sales will slide from $5.29 billion in the year ended July 31, 2006, to $3.46 billion in the 12 months ended July 2008, to roughly $2.11 billion this fiscal year and then to $1.02 billion in fiscal 2010, according to court filings.
The projections then call for sales to reach $1.33 billion in fiscal 2011, $1.96 billion in 2012 and $2.31 billion in fiscal 2013. Meanwhile, the operating income line is forecast to swing from losses of $37.4 million in 2010 and $22.9 million in 2011 to a profit of $16.6 million in the year ended July 31, 2012, and $77.9 million in fiscal 2013.