San Jose-based Orchard Supply Hardware filed for bankruptcy Monday, but will remain in business after a $205 million pending sale to rival hardware store Lowe’s, which bought out at least 60 of the 91 Orchard Supply stores in California, according to Reuters.
According to Senior Marketing Director Leigh Parrish of FTI Consulting, there is on ongoing review process to identify which OSH stores will remain opened. However, there is no timetable for this, Parrish said.
“While Orchard does expect to close some stores, it is too early to say which stores may close or when,” reads a OSH press release.
That includes the future of Gilroy’s OSH store at 303 E. 10th Street in Gilroy, where store manager Craig Van Wy declined to comment Monday afternoon.
“Just another change of hands,” said a veteran employee who also declined to give his name.
The employee said he’s seen the company acquired by several companies in his tenure.
“Not much will change,” he said.
Not even the name on the existing storefronts will change, as OSH will be owned by Lowe’s but treated as “a separate, standalone business.”
“We have worked hard to continually improve our stores and ensure we are delivering on our promises to the many individuals and families who depend on our business, and we are proud of what we have accomplished together,” President and Chief Operating Officer Mark Baker of OSH, which set up a website http://www.orchardrestructuring.com to answer any questions related to the pending sale to Lowe’s and OSH’s Chapter 11 bankruptcy filing.
Among the details listed by Baker, OSH maintains its stores will provide the same great selection of products and expert advice; continuation of its sales and loyalty programs; and payment in full for the vast majority of its suppliers.
Eighty-nine of the 91 Orchard Supply stores are in California, and Lowe’s reportedly bought out at least 60 of them, the LA Times reports. At each OSH store, there are between 40-50 employees. Under the agreement, OSH would keep retain its management team and employees, the LA Times reports.
“In short, we’ll be the same Orchard, but we’ll be in a much stronger position to serve you in the future,” stated Baker.
OSH, which hopes to complete the bankruptcy process within 90 days, reported $657 million in revenue during its last fiscal year. Lowe’s, the second-largest home improvement chain in the country after Home Depot Inc., pulled in $50.5 billion in sales.