Orchard Supply Hardware closing all stores


Nearly 100 locations, 4,000 employees affected

(Orchard Supply Hardware operates regular business hours Wednesday on 41st Avenue in Capitola. The business chain, founded in 1931 in San Jose, will soon close. Photo by Tarmo Hannula/Register-Pajaronian)

CAPITOLA — A little more than two years after closing several Orchard Supply Hardware stores, including the Watsonville location, owner Lowe’s Companies, Inc., announced it will close the remaining 99 stores.

According to Lowe’s Public Relations Director Jackie Hartzell, the OSH stores are not profitable, and so the company is redirecting its financial resources into its Lowe’s home improvement chain.

The announcement includes all stores located in California, Oregon and Florida. 

It also includes the Capitola store at 1601 41st Ave., which underwent a $2.4 million upgrade in 2016.

Lowe’s made the announcement Tuesday in a public release listing its sales and earnings results for the second quarter.

The stores will reportedly begin liquidation sales on Thursday. The stores are set to close by the end of the 2018 fiscal year, which is Feb. 1, 2019.

About 4,300 employees will be affected, and will be given “priority status” should they apply for other positions with Lowe’s, Hartzell said.

According to Hartzell, 86 percent of OSH stores are located within 10 miles of a Lowe’s hardware store.

“We are working hard to make this transition as smooth as possible for our associates and our customers,” she said. “We will be retaining our associates through the store closure process and are encouraging them to apply for open roles at Lowe’s stores, where they will receive priority status. Associates will receive job placement assistance, and we will be providing eligibility for severance.”

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