By Mary O’KEEFE
This week it was announced that Orchard Supply Hardware (OSH) filed for Chapter 11. On Wednesday, the U.S. Bankruptcy Court for the District of Delaware approved all of the first day motions related to the filing, according to a prepared statement.
The approved motions will allow the company to continue to meet its financial obligations throughout the Chapter 11 case. OSH will also be able to continue to pay its employee wages and benefits as usual.
“The motions approved will help ensure we continue to operate our business as usual and uphold our commitments to all of our stakeholders while we work to achieve our financial objectives,” said Mark Baker, Orchard president and chief executive officer. “This is a very important milestone in the Chapter 11 process, and we thank the Court for its careful consideration of our requests. We are confident that Orchard is on the right path for long-term success through the actions we are taking with our business and certain stores. We are grateful for the support we have received from our lenders, associates, customers and supplier partners as we work to achieve a sustainable capital structure for our business.”
On Monday, the company announced it had reached an agreement with Lowe’s Companies, Inc. that will acquire the majority of OSH assets. Under the terms of the agreement, OSH will operate as a separate, stand-alone business at the completion of the sale process, retaining its brand, management team and associates, according to an OSH statement.
Initially eight stores will be closed.
“La Crescenta was not on the list,” stated OSH spokeswoman Leigh Parrish in an email interview.
The initial eight are located in Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown, Newark and Vacaville.
For more information and to follow the company’s Chapter 11 progress, visit www.OrchardRestructuring.com.