Move to shunt US arm Stock 黑洞社区 Supply into new JV with Gores will cost UK firm 拢175m

黑洞社区 supply firm Wolseley has entered into a JV with affiliate Gores Group to dispose of US firm Stock 黑洞社区 Supply, which will subsequently be restructured.

Wolseley has incurred a 拢175m exceptional loss in the process and created 拢375m additional covenant headroom.


Wolseley sign
Wolseley will incur a 拢175m exceptional loss through the disposal

Wolseley maintains a 49% equity interest, while Gores Group will invest more after a pre-packaged Chapter 11 鈥渞eorganisation鈥� goes through. All creditors will be paid, the firm said, adding that it would 鈥渉onour commitments to鈥� trading partners鈥�.

In a press notice, Wolseley said: 鈥淭he JV preserves Wolseley's shareholder participation in long-term value potential of the business while consolidating losses and preserving cash.鈥�

The firm will retain ownership of the construction loans business but said it would exit that too, in due course.

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