Leaner Stock Emerges From Chapter 11

Stock Buildin-e Supply. Raleigh, N.C., emerged from Chapter I I bankruptcy July I with l0l fcwer srorcs.

"We are re-focused on our core markets and are well-positioned for the upturn in the housing market," said president Joe Appelmann. "We are pleased to have completed our recapitalization on an accelerated timeline, while meeting the commitments we made to our customers. vcndors and employees-none of whom were impaired as part of the bankruptcy process."

Filing for Chapter I I was a requirement of Stock's sale to the Gore Group, a Los Angeles-based private equity firm. The firm acquired 5lVo of Stock from its parent, UKbased Wolseley, which retains a 49c/o percent interest in the company.

During the reorcanizution process. Stock exited 32 markets. The company also eliminated 8l jobs at irs headquurters just dlys bel'ore emerging from bankruptcy.

The company's l9 markets now include the Triangle, Triad and Charlotte areas of North Carolina: Greenville and Columbia. S.C.:

Austin, Amarillo, Houston, Lubbock and San Antonio, Tx.; Salt Lake City and southern Utah; Spokane, Wa., and northern ldaho; Washington, D.C; Paradise, Pa.; Richmond, Va.; Atlanta, Ga.; Albuquerque, N.M.; and Los Angeles, Ca.

The Gores Group invested $7-5 million in Stock and made a $150 million credit line availablc that has not been used yet.

"We believe the decisions made over the past several weeks have put the company on a path fbr success," said Timothy Meyer, chairman and managing director of The Gores Group. "The proactive steps Stock has taken will eliminate uncertainty about our future, an uncertainty that many of our competitors continue to face."

ProBuild Expands In Chicago

ProBuild Holdings, Denver, Co., has picked up the leases at three mothballed Stock Building Supply locations in the greater Chicago area.

The yards-in Hampshire, Chicago and Elgin, Il.-were among 20 yards operated by Seigle's Building Supply when the business was acquired bv Stock in late 2005. The Seigle iamily had retained ownership of the 23-acre Hampshire site, and will lease it to ProBuild as a lumberyard and component plant. Mark Seigle will continue at Hampshire.

Bosed in Annopolis, MD, Fletcher Wood Solutionso is the lorgest monufocturer of defect-free, oppeoronce grode rodioto pine products in New Zeolond. Distributing our cleor boords, mouldings, LIFESPAN@ treoted wood, ond lumber to the North Americon morket through our proven ond completely integrated supply choin, Fletcher Wood Solutions@ mointoins direct occess to one of the lorgest FSC certifiedo pine plontotion forests in the world.

"The greater Chicago area is a very strategic market for ProBuild," said Joseph Todd, ProBuild Northeasr regional president. "Investing now will ensure that we are well positioned throughout the area as market conditions improve."

Ex-Owners Buy StockYards

The former owners of Kempsville Building Materials, Chesapeake, Va., have partnered with 195-unit Carter Lumber, Kent, Oh., to buy the business back from Stock Buildins Supply.

Carter will own 5oo/o of the venture, which will carry the Kempsville name and be run by Scott Gandy, as president, and Brenda Onley, as v.p. The pair sold the business to Stock in 2005.

The sale also includes a Stock warehouse in Newport News, Va. Stock closed the two facilities early in the summer, during its bankruptcy reorganization. "We feel we have some unfinished business here." said Onley. "We want to make it right asain."