Orchard Supply Hardware Files for Bankruptcy

Written by Claudia Cruz

Orchard Supply Hardware has filed for bankruptcy, specifically Chapter 11, the Silicon Valley Business Journal reports.

According to Reuters, Lowe's Companies has its eyes set on the San Jose-based hardware store already placing a bid to buy at least 60 of OSH's 91 chain stores. Lowe's would probably not rebrand the stores or change its management. Mountain View's Orchard Supply Hardware store is located at 2555 Charleston Rd.

OSH announced that Lowe’s will acquire the majority of its assets for $205 million in cash, plus assume most of its liabilities.

“The steps we are taking today allow us to definitively address our balance sheet issues in order to fully execute on our brand transformation and growth strategies," said Mark Baker, Orchard President and Chief Executive Officer. "We believe that Lowe’s offer is a validation of Orchard’s unique market opportunity and of our strategy to capture it. We are confident the steps we are taking today will allow us to achieve our financial and operational goals and are certain we are making the right decision both for our business and for the many individuals and families who depend on Orchard.”

What do you think of this news? Do you shop at OSH? Do you think its character will change with Lowe's as the majority owner?