Orchard Supply Hardware, founded in 1931 in San José and acquired by Lowe's in 2013, has 99 stores in California, Oregon and Florida. Lowe's is closing the stores to focus on its core home improvement business, the company said.
USA Today's report added:
Employees were told about the decision Tuesday and all stores will be open Wednesday for normal business hours. Orchard Supply Hardware stores will have store closing sales beginning Thursday with a plan for all stores to be closed by the end of the company's fiscal year. Lowe's will also close a distribution center in Tracy, Calif., the company said.
"While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy," Lowe's president and CEO Marvin Ellison said in a statement. "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."
The news came the same day that Lowe's reported second-quarter earnings that topped analysts expectations, according to MarketWatch. Sales rose 7.1% to $20.9 billion, while same-store sales were up 5.2%. Analysts were looking for earnings of $2.02 a share and revenue of $20.78 billion.Read More