Fry bacon until crisp. Saute onion and garlic in drippings.
Add wine, ½ cup stock and thyme in heavy skillet and simmer briskly, covered, for 10 minutes.
Uncover and cook, stirring occasionally, for 5-7 minutes or until the onions are browned and tender.
Stir in sauerkraut, bay leaf and enough remaining stock to barely cover the contents. Simmer, covered for 30-40 minutes, stirring occasionally, until the sauerkraut is tender, lightly browned and the liquid has been absorbed. Discard the bay leaf and season to taste with salt and pepper.