Orchard Supply receives DIP financing
Bloomberg is reporting that Orchard Supply Hardware Stores Corp. received bankruptcy court approval for $176.3 million in financing.
The debtor-in-possession loan will fund operations at some 60 Orchard Supply Stores, as the California chain awaits finalization of an acquisition offer put forth by Mooresville, N.C.-based Lowe’s.
“I believe the aggregate facility is necessary for the company” and gives suppliers confidence the company will have adequate liquidity to continue going forward, Chris Newman, Orchard Supply’s chief financial officer, told the judge, according to Bloomberg.
Orchard says it will operate as a separate, standalone business at the completion of the sale process, retaining its brand, management team and associates. The chain was spun off a standalone business from Sears in 2011. It filed for bankruptcy last month.
Western Insulation opens Bakersfield location
Western Insulation is expanding to the Bakersfield, Calif. area with a new store location that will service local homeowners and contractors. The California-based company will bring its insulation installation expertise to the area, in addition to services such as fireplace, garage door and gutter installation.
"We look forward to offering our products and services to both the homeowner and contractor alike," said division and regional manager Bill Spencer. "Our trained Installed Product Specialists are ready to install any of our quality building products, from fiberglass insulation to gutters and garage doors."
The Bakersfield store will mark the seventh California location for Western Insulation, which also has a presence in Ceres, Riverside, Atascadero, Sacramento, Livermore and Fresno.
Western Insulation is part of the Masco Contractor Services group, which are all subsidiaries of Masco Corporation.
Eight OSH stores begin liquidation march
Great American Group is handling liquidation sales at eight Orchard Supply Hardware locations.
The eight stores, located in Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown, Newark and Vacaville, were approved for liquidation as part of the company’s First Day Motions after it filed for Chapter 11 bankruptcy and was acquired by Lowe’s as part of an initial stalking-horse bid.
Great American Group won the bidding process to manage the store closing sales and has been managing the eight locations since June 29.
"We are offering significant discounts on every item in every department, so consumers will have the opportunity to purchase quality hardware supplies at a discount," said Scott Carpenter, president of Great American Group’s Retail Division, in a statement. "Customers will also receive top-notch service and expert advice from the sales people Orchard customers already know and trust as operations wind down in these locations."
Under the plan, Orchard will maintain its brand and management structure throughout the remainder of its existing locations.