Annie Goeller, Daily Journal of Johnson County staff writer
A Franklin lumber company will close its doors in July, laying off 85 employees.
Stock Building Supply will permanently close its Franklin location, at 2801 N. Morton St., July 12, according to a notice sent to the Indiana Department of Work-force Development.
The company is closing facilities across the nation in underperforming markets as part of a restructuring plan after another company acquired more than half of the business, a spokeswoman said.
Stock Building Supply is the second Franklin company to announce it will close this year, joining Trussway Ltd.
Mitsubishi Heavy Industry Climate Controls is suspending production at its Franklin plant but not closing.
Those three announcements total more than 200 jobs lost this year in Johnson County, where the unemployment rate was 8.1 percent in April.
Companies like Stock Building Supply and Trussway Ltd. struggled when the housing market declined, Franklin Mayor Fred Paris said.
Stock Building Supply sold house framing packages to large home builders. As those builders have slowed activity, their suppliers have struggled too, Paris said.
The business, formerly called Davidson Lumber Co., at one time had more than 400 employees, Paris said.
When the company closes, 85 workers, including managers, drivers, forklift operators, machine operators and engineers, will lose their jobs.
Company spokeswoman Katie Cralle could not provide details on any reductions of workers before the closing.
Stock Building Supply released the following statement Wednesday:
"Stock Building supply will be closing stores in select underperforming markets. We regret having to make these cuts and understand it is a challenging time for our associates. These difficult decisions are necessary to focus on those markets with the strongest prospects for growth and ensure that Stock is well positioned for the housing market upturn."
The closing comes about three weeks after The Gores Group, a California-based private equity firm, acquired 51 percent of Stock Building Supply Holdings. As part of that deal, Stock Building Supply is filing for Chapter 11 bankruptcy, according to a company news release.
In October, the company had announced a restructuring plan that would include closing 86 facilities and laying off 3,000 workers, according to a news release.
Cralle said Stock Building Supply executives decided to close facilities in underperforming markets.