First Round of OSH Closures Announced; Foster City Spared

By Zoneil Maharaj

Orchard Supply Hardware, which filed for bankruptcy Monday, has released an initial list of stores headed for the chopping block, but the OSH store in Foster Cityis safe—for now.

The San Jose-based OSH operates 91 stores in California, including locations on the Peninsula in Foster City and Millbrae

On Wednesday, the hardware retailer posted a list of eight stores slated for closure on its news website www.orchardrestructuring.com, which was created to address the bankruptcy and transition.

The initial hit list includes stores in Newark, Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown and Vacaville.

“We are still reviewing store performance and cannot say with certainty which other stores may close or when,” the company stated in an FAQ.

Though no date for the closures were given, the FAQ states that closing sales will be held later this month at the eight locations on the list.

The company also confirmed on Wednesday that Lowe’s has agreed to acquire a majority of Orchard Supply’s assets for $205 million in cash. Lowe’s will continue to operate the acquired stores under the Orchard Supply brand, according to the press release.

“At the completion of the sale process, Orchard will operate as a separate, standalone business, with the same brand, management team, associates and commitment to putting our customers first,” the company stated.

Though there’s no word yet on which stores would be picked up by Lowe's, the speculation is the neighborhood hardware and garden stores in areas where Lowe's lacks a presence would be top priority. 

The closest Lowe's locations are in San Bruno and South San Francisco.