Lampert’s chop is timed up with today’s announcement that Orchard Supply Hardware has received a 60-day extension from the previous May 1 deadline to reach an agreement with lenders. Orchard Supply intends to reach a mutual agreement with lenders to deleverage, modify or find a solution for the company’s capital structure by June 30, 2013.
Based on Orchard’s sales for March and April, the company anticipates comparable store sales to increase by around 10% for the first quarter ending May 4, 2013. Several days ago, Orchard Supply Hardware stores entered Oregon for the first time, and by next week will have transformed 16 stores to its new “neighborhood format.”
“Orchard continues to make solid progress in our efforts to strengthen our capital structure and improve our operating performance,” said Mark Baker, Orchard Supply president and CEO. “Our supplier partners have done a great job helping to keep our inventories at appropriate levels even while we have been outperforming our sales plan through the start of the spring season.”
Spring and summer could make a difference in seasonal sales. Orchard Supply Hardware’s retail philosophy is: "Take good care of your customers and they will take good care of you.” With an 80-year history tied to farmers in California since the Dust Bowl era, the company may be able call on vast reserves of customer loyalty to spike sales in the landscaping and garden season.
Spun off from Sears in December 2011, Orchard Supply Hardware Stores Corporation operates neighborhood home improvement, hardware and garden stores. Founded as a farmers’ cooperative in 1931, today the stores average approximately 36,000 square feet of interior selling space and 8,000 square feet of exterior nursery and garden space. As of February 2, 2013, the Company had 89 stores in California, and as of this week, adds two new stores in Oregon.
Compare Lampert’s holding histories of Sears-related companies:
Top investor Guru Eddie Lampert is also manager of his firm ESL Investments and one of the richest people in America. His portfolio lists 11 stocks at a total value of $3.8 billion and a quarter-over-quarter turnover of 8%, as of April 24, 2013.
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