Business & Tech

Orchard Supply Hardware Files Bankruptcy

It's unclear what will happen to the Napa OSH, but Lowe's may buy the stores and keep them open.

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 in Napa on Bel Aire Plaza.

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 Napa. The closest stores are in Vallejo and Fairfield.

"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.

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