Orchard Supply Hardware closure affects four Portland-area stores
Four Orchard Supply Hardware stores will close their doors in October, part of a nationwide closure that will affect all 99 of the company's locations.
All four of the Oregon stores are in the Portland metro area, including two Portland stores on Northeast Halsey in the city's Hollywood District and Southeast 10th Avenue in the Belmont District, one on Southwest Cascade Highway in
Tigard and one on southwest Barnes Road in Beaverton.
Orchard Supply Hardware also has stores in California and Florida. All of the store closures are slated to be completed by February of next year.
An announcement about the closures was made Wednesday during a second quarter sales and revenure reportby Orchard Supply Hardware's parent company, Lowe's Cos. Inc. The company said closing the Orchard Supply Hardware stores will allow it to focus on its core home improvement business.
"We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects that take use away from our core mission of being a great omni-channel home improvement retailer," Marvin Ellison, Lowe's CEO and president, said in a written statement.
Lowe's purchased Orchard Supply Hardware in 2013 for $205 million, as part of a Chapter 11 bankruptcy reorganization of the San Jose-based company. Orchard Supply Hardware last year posted $600 million in sales, which represented less than 1 percent of the overall $68.6 billion in sales that Lowe's posted last year, according to the company.
John Asher, rapid response coordinator for the Oregon Displaced Worker Unit, dated Aug. 21 received correspondence from Lowe's alerting the state that all 112 of the people currently employed at Orchard Supply Hardware stores in Oregon will be out of work "on or around Oct. 20." Orchard Supply Hardware currently has 4,300 employees nationwide.
Lowe's said it will provide outplacement services for all of the employees affected by the closures. Those employees also will be given priority if they choose to apply for positions at Lowe's stores, Ellison said in his statement.
Closing the stores will cost between $390 million and $475 million through the rest of this year in order to cover lease obligations and other related expenses, according to Lowe's.
On Thursday morning, Orchard Supply Hardware's website announced a store closing sale offering "slash" price reductions of 10 percent to 30 percent off lowest marked prices on inventory items.
Among the stores listed is one in the Goat Blocks, which moved into the Belmont District development in May of last year.
Goat Blocks developer Killian Pacific declined to comment on future plans for the space once Orchard Supply Hardware closes this fall.
Management at the Orchard Supply Hardware store in Peterkorte Town Square in Beaverton similarly declined to comment on the pending closure. However, 52 Google reviews by customers gave the store an average of 4.1 out of 5 stars for a well-vetted selection of merchandise and outstanding customer service by store employees.
"They walked me through everything, and I felt like a very valued customer," one reviewer wrote.
The store was featured in a May episode of Designing Spaces, a DIY home-improvement show on Lifetime.
Even as it prepares to shut down its Orchard Supply Hardware locations, Lowe's is eyeing making changes at its home improvement stores, which number 14 in Oregon.
"... We are developing plans to aggressively rationalize store inventory, reducing lower-performing inventory while increasing the depth of high velocity items," Ellison said in the written statement.