June 17 U.S. hardware-and-garden chain Orchard Supply Hardware Stores Corp filed for Chapter 11 bankruptcy protection early on Monday, court documents showed, and has agreed to sell the majority of its assets to retailer Lowe's Companies Inc for about $205 million in cash.
Lowe's would serve as a "stalking horse bidder" in an auction of Orchard's assets. A stalking horse bid would serve as the minimum offer for the business, which could still be topped by others.
Orchard said it has secured commitments for $177 million in debtor-in-possession (DIP), which will help it continue meeting its financial obligations throughout the Chapter 11 case.
The case is in re Orchard Supply Hardware Stores, Case No. 13-11565, U.S. Bankruptcy Court, District of Delaware.