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Orchard Supply Hardware, a hardware and garden chain with 99 locations in California, Oregon and Florida, will close nationwide by the end of fiscal year 2018, parent company Lowe’s confirms in its second-quarter 2018 financial results.
In the earnings report, Lowe’s also confirmed it would close the distribution center that services Orchard Supply Hardware.
On Tuesday, Aug. 21, Orchard Supply Hardware locations across San Francisco closed early, with some posting signs citing computer trouble. Signs at other locations indicated the stores would be open for business the next day, NBC Bay Area reports.
Lowe’s says the company came to a decision on Aug. 17 to close Orchard Supply Hardware locations “in order to focus on its core home improvement business.”
“While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy. We will be providing outplacement services for impacted associates, and they will be given priority status if they choose to apply for other Lowe’s positions,” says Marvin R. Ellison, Lowe’s president and CEO.
Speaking during the company’s earnings call this morning, Ellison said Lowe’s will no longer pursue initiatives that are not core to its fundamental retail offerings.
“The company has unfortunately become distracted over the past few years. Specifically, we chased initiatives that did not have value and were not important to our retail business. Spending time on these noncore initiatives shifted capital, people and attention from being an operationally sound home improvement retailer,” he said.
Ellison said Orchard Supply Hardware will conduct store closing liquidation sales with the help of a third-party retail services group to ensure a “seamless experience” for customers.
In September 2013, Lowe’s acquired the company for approximately $205 million. At the time, Orchard operated 72 locations.
Orchard Supply Hardware began in 1931 after a group of 30 farmers contributed $30 each and formed a co-op, according to the company’s website. It initially sold farming equipment, but by the 1940s, the business also offered hardware, gardening supplies and housewares. The company was headquartered in San Jose, California.
