Report: Orchard Supply considers bankruptcy option
Orchard Supply Hardware, the historic California brand that has strived to strike a happy medium between big-box home center and friendly neighborhood hardware store, is considering a bankruptcy option, according to a report in Bloomberg News.
The report also says the California hardware chain is continuing talks with lenders over its $261 million debt and lease obligations.
Early last month, the 89-store San Jose, Calif.-based retailer reported a loss of $118.38 million for the full year, as sales declined slightly to $657.3 million.
Orchard opened its first store in 1931 as a co-op for local farmers. It became part of Sears in the mid-1990s, but it was spun off early in December 2011.
Back in February, Orchard Supply issued an update on its efforts to improve its capital structure.
At that time, CEO Mark Baker commented: “We have made significant strides in transforming the Orchard brand and our business since December 2011 when we became an independent public company. At the same time, we recognize that we did not achieve all of our objectives of the past year and that we continue to face challenges ahead. Our team remains highly focused on our five strategic priorities, with particular emphasis on the execution of our merchandising, marketing and store operations initiatives during the important spring season.