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Lowe's shuttering Orchard Supply Hardware, hires new CFO

August 22, 2018

While home improvement retailer Lowe's bested expectations with its latest earnings report, it also announced it will shut down its Orchard Supply Hardware stores by early next year.

While store sales jumped 5.3 percent in the second quarter, it's nowhere near robust as Home Depot's quarterly sales of 8.4 percent, according to a CNN Money report.

The news comes just three months since former JC Penney CEO Marvin Ellison came aboard as Lowe's CEO. Ellison spent 12 years as an executive with competitor Home Depot. Lowe's bought Orchard Supply Hardware for $205 million in 2013.

Lowe's will shutter the 99 Orchard stores (located in Florida, Oregon and California) and a distribution center by next February, according to CNN. The 4,300 employees will get “priority” status if applying for other Lowe's positions.

"While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy," Ellison said in a statement.

The retailer also announced it has hired David Denton as its new CFO. Denton had been serving as CVS's CFO. Lowe's current CFO is retiring in October.