Stock Building Supply has become the latest building materials supply to file Chapter 11 bankruptcy.
Along with the annoucement that they have gone into Chapter 11, Stock Building parent company Wolesley PLC announced on May 6, 2009 that have reached and agreement to sell a 51% stake in Stock to the private equity firm the Gores Group of Los Angeles.
Until this deal surfaced, the future of Stock Building was looking very grim. Wolesley publicly announced in March that if they did not find a suitor they would most likely shut down the entire operation by August of this year. Stock lost $200 million in 2008 and Wolesley just wants to stop the bleeding. The residential building market that has been Stock's core market is showing no signs of improvement and Wolesley has lost patience and hope for a turnaround in the near future.
Like any of these current Chapter 11 cases (HCS-Cutler, ORCO), this is far from a done deal and Stock Building employees should probably continue to look for employment.
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