Community Corner
Campbell Could Lose Orchard Supply Hardware
The chain filed for bankruptcy but could be bought by Lowe's and kept open.
Written by Jennifer Squires:
Orchard Supply Hardware Stores Corp filed Chapter 11 bankruptcy but a rival retailer may step in to run the shops, Reuters reported Monday morning.
The San Jose-based OSH operates 91 stores in California, including one just outside the Campbell city limits at 5365 Prospect Rd. in San Jose.
Lowe's is considering purchasing at least 60 of those locations if no other buyers emerge, according to Reuters. No word yet on which stores would be picked up by Lowe's, but the speculation is the neighborhood hardware and garden stores in areas where Lowe's lacks a presence would be top priority.
Lowe's, which has 110 stores in California, doesn't have a location in Campbell, but there are several stores in the San Jose area.
"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, president, chairman and CEO of Lowe's was quotes as saying by Home Channel News. "Strategically, the acquisition will provide us with immediate access to Orchard's high-density, prime locations in attractive markets in California."
Orchard Supply reported $657 million in revenue last year, Home Channel News reported.
OSH, which broke off from parent company Sears Holdings Corp two years ago, filed a petition for relief under Chapter 11 in the U.S. Bankruptcy Court in the District of Delaware. Orchard Supply partly blamed "hefty dividends paid out to its former parent" for the economic failure, Reuters reported.
Find out what's happening in Campbellwith free, real-time updates from Patch.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
