Executive Briefings

Lowe's Acquires Bankrupt Hardware Chain, to Pay Suppliers

Lowe's Companies announced its acquisition of the majority of assets of Orchard Supply Hardware has been approved by the U.S. Bankruptcy Court for the District of Delaware. Lowe's will acquire 72 Orchard stores for approximately $205m in cash, plus the assumption of payables owed to nearly all of Orchard's supplier partners. Lowe's expects to close the transaction by the end of August.

Once completed, the acquisition will enable Lowe's to expand its presence and reach a new customer base in California, where Lowe's is currently underpenetrated. Orchard is expected to operate as a separate, stand-alone business, retaining its brand and its San Jose headquarters. Richard D. Maltsbarger, the Lowe's executive who led the team to acquire Orchard, will become president of Orchard.  Chris D. Newman, Orchard chief financial officer and head of development, will have responsibility for finance, information technology and ecommerce, supply chain and loss prevention.

Located in high-density, prime locations that are difficult for larger format retailers to enter, Orchard's smaller-format "neighborhood" stores complement Lowe's strengths in big-box retail.

Source: Lowe's

Once completed, the acquisition will enable Lowe's to expand its presence and reach a new customer base in California, where Lowe's is currently underpenetrated. Orchard is expected to operate as a separate, stand-alone business, retaining its brand and its San Jose headquarters. Richard D. Maltsbarger, the Lowe's executive who led the team to acquire Orchard, will become president of Orchard.  Chris D. Newman, Orchard chief financial officer and head of development, will have responsibility for finance, information technology and ecommerce, supply chain and loss prevention.

Located in high-density, prime locations that are difficult for larger format retailers to enter, Orchard's smaller-format "neighborhood" stores complement Lowe's strengths in big-box retail.

Source: Lowe's