Lowe’s (NYSE:LOW) is planning to close down all of its Orchard Supply Hardware stores in the U.S.
Lowe’s says that it is choosing to close down all of its Orchard Supply Hardware in order to better focus on its core home improvement business. This will have the chain shutting down all 99 stores in the U.S.
Orchard Supply Hardware stores are located in California, Florida and Oregon. There’s also a single distribution center that supplies all of these stores with product. It will also be shutting down. Lowe’s plans to have this complete by the end of fiscal 2018.
Lowe’s notes that it is expecting to suffer $390 million to $475 million in pre-tax charges in connection to the closures. These charges are for “lease obligations, accelerated depreciation and amortization, and severance obligations.” It expects these charges to affect its second half of 2018.
Lowe’s also points out that it will be holding store closing sales for the 99 Orchard Supply Hardware locations. The company is working together with Hilco Merchant Services to have it manage the wind-down of these stores.
Another bit of news from Lowe’s today is that it has found a replacement for CFO Marshall Croom. David Denton, current Executive Vice President and CFO of CVS Health (NYSE:CVS), will be taking on this role. The company expects him to join it as its new CFO in the second half of 2018 after CVS acquires Aetna (NYSE:AET).
LOW stock was up 8% as of Wednesday morning and is up 8% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.