Stock Building Supply, one of America's biggest LBM dealers, plans to close two panel, millwork and truss plants in Lancaster County, Pa., and consolidate them into a third facility, a Stock spokesperson told ProSales today.
Nadine Keutzer confirmed a press report that Stock had filed a notice with the Commonwealth of Pennsylvania saying it intended to close its fabrication plant in Kinzers, Pa. (Another local press report also announced the filing.) A total of 36 jobs will be affected by the closure effective Dec. 27, Stock said in its notice.
Keutzer confirmed the closure in Kinzers and said that one of two operations in Paradise, Pa.--located a few miles from Kinzers--would be closed as well. Those operations would be folded into the other facility in Paradise, she said. Keutzer declined to say how many jobs would be lost as a result of the closure in Paradise.
The consolidation will make the oeprations "more efficient," Keutzer said. "In order to remain a strong player in the building industry, we have to consolidate."
Raleigh, N.C.-based Stock ranks second on this year's ProSales 100. At one point it had more than 350 facilities, close to $5.5 billion in annual revenue and 17,000 employees in roughly 50 markets nationwide. But the housing crash hurt it particularly hard, forcing it to close hundreds of yards and incur crippling rental charges on those shuttered yards. Stock's British-based parent, Wolseley Plc, could support it for a while, but then the worldwide recession left it unable to afford to prop up Stock.
Consequently, on May 5 Wolseley sold 51% of Stock to the Gores Group, a Los Angeles-based private equity firm, and the next day Stock filed for protection from creditors under Chapter 11 of the federal bankruptcy code. It emerged from Chapter 11 on July 1 with roughly 97 branches and 3,500 employees serving 19 markets nationwide. The Paradise-Kinzer operations were one of those 19. (See roundup of recent stories.)
