The local Orchard Supply Hardware store on Bouquet Canyon Road in Saugus is under new ownership, but they’re committed to providing the same quality of service for their customers.
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The company, based in San Jose, filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on Monday, June 17.
They reached an agreement with Lowe’s Companies, which will acquire the majority of OSH’s assets for $205 million in cash, plus the assumption of payables owed to nearly all of their supplier partners.
Lowe’s will also acquire at least 60 OSH stores.
Jason Crawford, with Santa Clarita’s Economic Development Division, said he was unsure how the change will affect customers.
In a statement addressing customers and suppliers, OSH President and CEO Mark Baker said that going forward, “we’ll be the same Orchard, but we’ll be in a much stronger financial position.”
OSH will continue to operate as a standalone business under Lowe’s, and they intend to keep branding and service consistent during the transition, honor gift cards and maintain the structure of leadership.
“Orchard has consistently delivered an exceptional shopping experience for our customers and, as we have executed our repositioning strategy, has also made significant operational improvements to ensure that our stores are optimally positioned for long-term success,” Baker said in a press release. “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. 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.”
Lowe’s is glad for the opportunity to reach OSH’s more focused demographic.
“Orchard’s neighborhood stores are a natural complement to Lowe’s strengths in big-box retail, offering smaller-format hardware and garden stores catering to the needs of local customers,” said Robert Niblock, Lowe’s Chairman, President and CEO, in a statement. “Strategically, the acquisition will provide us with immediate access to Orchard’s high density, prime locations in attractive markets in California, where Lowe’s is currently underpenetrated, and will enable us to participate in a larger way in California’s economic recovery.”
As part of the restructuring, on Friday, June 19 OSH announced the closure of eight stores, in Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown, Newark and Vacaville. Updates on future closures can be found here.
To read Baker’s full statement to OSH customers, click here.
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Source: Santa Clarita News