The court approved Orchard Supply Hardware’s request to get access to $177 million in financing to help the business run operations through the bankruptcy process.
This court-approved financing, in addition to Orchard Supply’s ongoing cash flow, will ensure it is able to continue meeting its financial obligations throughout the bankruptcy process.
“We appreciate the Court’s careful consideration and approval of our financing, which is critical to maintaining our normal operations during the Chapter 11 process” said Mark Baker, Orchard President and Chief Executive Officer.
Lowe’s has put a bid of $205 million to acquire Orchard Supply’s assets, which it plans to run as a standalone business with Orchard’s current management team.
Lowe’s bid will have to clear a bankruptcy auction where other suitors will be allowed to place competitive offers for the court to entertain.
Based in San Jose, Calif., and with fiscal 2012 annual revenue of $657 million, Orchard Supply operates 91 neighborhood hardware and garden stores, primarily located in densely populated markets in California.