View Mobile Site
 

Ask the Expert

Signal Photos

 

OSH hardware is closing

Posted: August 12, 2013 6:26 p.m.
Updated: August 12, 2013 6:26 p.m.

Santa Clarita's Orchard Hardware Supply store is closing the retailer confirmed Monday.

 

The Orchard Supply Hardware Store in Santa Clarita is closing.

Employees at the neighborhood hardware and garden store were notified Monday that a liquidation sale would begin immediately.

A store manager at the local Orchard would not comment, but a media spokesperson for the retailer confirmed the news with The Signal.

Employees also said they were told they would begin taking inventory immediately and that the store may close by October.

Orchard would not confirm a closure date saying it may be different for each store depending on how well inventory clearance sales go.

“Orchard Supply issued a press release today announcing its intent to move forward with the sale to Lowe’s as well as the closure of an additional nine stores,” said a media spokesperson for OSH. “Santa Clarita is included in the nine announced today.” 

In mid-June the retailer said it had reached an agreement with Lowe’s home improvement to sell itself for $205 million in cash.

At the time, a Lowe’s spokesperson implied that the Santa Clarita store was included in the acquisition offer that Lowe’s had made.

On Monday, a different spokesperson for Lowe’s said otherwise.

“Santa Clarita is not one of the 72 stores Lowe’s is bidding on,” said Chris Ahern , spokesman for Lowe’s.

The Orchard spokesperson confirmed.

“Santa Clarita is one of the stores being closed and therefore will not be acquired by Lowe’s,” said Leigh Parrish with FTI Consulting. “The stores being closed (17 in total, nine of which were announced today) will not be part of the transaction.”

In mid-June, Lowe’s announced that it would acquire the Orchard stores.

Saying the big box retailer considered Orchard to have a different customer base than Lowe’s; and a spokesperson said in June said it was evaluating all of the stores to see which ones would remain open.

To make the sale of Orchard Supply Hardware Stores financially viable, it filed a voluntary Chapter 11 bankruptcy petition. The company has struggled financially since Sears purchased it in 1996 and overloaded it with debt in 2006, then sold it.

Other suitors had until August 9 to bid against Lowe’s to buy the store. As of Monday, no other buyers surfaced.

Under terms of the deal, Lowe’s agreed to pay all debts owed to Orchard’s suppliers.

In a statement from Lowe’s on Monday, the company said the transaction – involving 72 Orchard stores - will be presented to the Bankruptcy Court for approval on August 20.

Lowe’s anticipates completing the acquisition by the end of August.

 

Comments

Commenting not available.
Commenting is not available.

 
 

Powered By
Morris Technology
Please wait ...