San Jose, Calif. -- A Wednesday report by Bloomberg said that Orchard Supply Hardware Stores Corp. has been given approval by the bankruptcy court to seek bids from liquidators to run going-out-of-business sales at eight underperforming stores and potentially another 22.
Orchard Supply, which currently has a $205 million offer from Lowe’s Cos. (LOW) for at least 60 of its 91 hardware stores, will hold a June 27 auction to determine which liquidator offers the best return for running its store closing sales. U.S. Bankruptcy Judge Christopher Sontchi gave the okay at a Wednesday hearing in Wilmington, Del.
Orchard Supply sought bankruptcy protection on Tuesday. The company never fully recovered from its 2011 spin-off from Sears Holdings Corp., which left the chain with a heavy debt load.