Orchard Supply Hardware

{{Infobox company

| name = Orchard Supply Hardware, LLC

| logo = Orchard Supply Hardware logo.png

| image = Orchard Supply Hardware in San Rafael, California - exterior.jpg

| fate = {{Plainlist|

Chapter 11 bankruptcy
Liquidation sale
Shut down by Lowe's in 2018
Rebranded to Outdoor Supply Hardware after purchase of brand name and intellectual property by Central Network Retail Group

}}

| type = Subsidiary

| traded_as = NASDAQ: OSH (2012–13)

| industry = Retail – Home Improvement

| products = Home improvement and gardening products

| num_employees = 5,400

| parent = {{ublist|W. R. Grace and Company (1979–1986)|Wickes (1986–1989) |Sears (1996–2005)|Sears Holdings (2005–2012)|Lowe's (2013–2018)|Central Network Retail Group (CNRG) (2019–present) (revival as Outdoor Supply Hardware)}}

| foundation = San Jose, California ({{start date and age|1931}})

({{start date and age|2020}}) as Outdoor Supply Hardware

| defunct = {{End date and age|2018|11}} (original company)

| location = San Jose, California, USA

| locations = 99 (Before closure)

}}

Orchard Supply Hardware (OSH) was an American retailer of home improvement and gardening products. Headquartered in San Jose, California, Orchard Supply Hardware had dozens of locations throughout California, with expansions into Oregon and Florida.

After starting as a non-profit cooperative in 1931, the company later turned into a for-profit corporation before it was bought and sold by a number of different corporations during the 1980s. In 1996, the company was acquired by Sears. After a brief period as a public company in 2012–13, the company filed for a Chapter 11 reorganization. In 2013, the bulk of OSH's assets and locations were purchased by the home improvement store chain, Lowe's. For the next five years, the chain was operated as a subsidiary of Lowe's and used for strategic expansion of retail operations. All stores were closed in November 2018.{{cite news |title= Lowe's to close all Orchard Supply Hardware stores nationwide |url=https://www.usatoday.com/story/money/business/2018/08/22/lowes-orchard-supply-hardware-stores-close/1060236002/ |date=August 22, 2018 |first=Mike |last=Snider |newspaper=USA Today |access-date= 2018-08-22}}[http://www.osh.com OSH.com] Retrieved 2018-11-21

In January 2020, the Memphis-based Central Network Retail Group purchased the OSH brand from Lowe's.{{cite news |title=Exclusive: New OSH makes deal with old OSH owner Lowe's for hardware brand |author=Jody Meacham |publisher=American City Business Journals |work=Silicon Valley Business Journal |date=January 23, 2020 |url=https://www.bizjournals.com/sanjose/news/2020/01/23/new-osh-outdoor-supply-brand-expansion-lowes.html |access-date=October 25, 2020}}

History

File:BracherOSH1942.jpg

File:OSHNeonSanCarlos.jpg

Orchard Supply was formed in 1931 as the Orchard Supply Farmers Co-op by 30 farmers, consisting mostly of orchardists and fruit tree ranchers who banded together to form a cooperative to buy essential farm supplies.{{cite book |last=Chapman |first=Robin |title=California Apricots: The Lost Orchards of Silicon Valley |date=April 16, 2013 |publisher=The History Press |isbn=978-1609497958 |pages=90, 160 |url=https://books.google.com/books?id=BjDmS_S01gkC&q=orchard+supply+hardware&pg=PA80}} Each farmer put up $30 and in the midst of the Great Depression a new company was formed. Stanley B. Smith served as the company's first general manager and president.{{Cite web|url=https://corporateofficeheadquarters.org/orchard-supply-hardware/|title=Orchard Supply Hardware Corporate Office Headquarters|date=2019-02-05|website=Corporate Office Headquarters|language=en-US|access-date=2020-04-08}}

Operations started in a rented warehouse at 230 Bassett St. in San Jose, CA. In spite of the Great Depression, the cooperative was successful. In 1933 the co-op had moved to a larger location at 44 Vine St. in San Jose. The new location featured a large retail display area, off-street parking, and an adjoining warehouse.{{Citation needed|date=June 2013}}

In 1946 the company moved to a site at 720 West San Carlos St. in San Jose.{{cite news |last1=Rodriguez |first1=Joe |title=Orchard Supply Hardware rises from hard times |url=http://www.mercurynews.com/News/ci_25859604/Orchard-Supply-Hardware-rises-from-hard |access-date=4 January 2015 |newspaper=San Jose Mercury News |date=29 May 2014}} By then, there were almost 2000 members. In 1962, Albert B. Smith (Stanley's son) became president, expanding the business into a chain of stores which, at {{convert|25000|sqft}} each, were considered large at the time.{{cite book |last=Vereen |first=Bob |title=Surviving—in spite of everything: a postwar history of the hardware industry |year=2010 |publisher=Dog Ear Publishing |location=Indianapolis, IN |isbn=978-1608444168 |pages=15, 148 |url= https://books.google.com/books?id=ZXnraf9ufVUC&q=orchard+supply+hardware&pg=PA15}}

By 1950 the electronics industry began booming in the Santa Clara Valley, and with it came an abundance of new home owners in the San Francisco Bay Area. The orchards gradually became residential neighborhoods, and the "Orchard Supply Farmers Co-op" became a for-profit corporation, "Orchard Supply Hardware" retail stores.{{cite web|url=http://www.osh.com|title=OSH Website|date=2012-03-25|publisher=Osh.com|access-date=2013-06-27}}{{cite book |editor1-last=Pederson |editor1-first=Jay P. |title=International directory of company histories |volume=18 |year=1997 |publisher=St. James Press |location=Detroit |isbn=978-1558623521}}

In 1977, the company purchased a 19-acre warehouse and office complex from Sunsweet Growers to serve as a distribution center. In the 1980s, Loren S. Smith (another son of Stanley) became president and continued the expansion. In 1992 the distribution center was moved to Tracy, CA.

File:Orchard Supply Hardware in San Rafael, California - interior.jpg as shown in 2016]]

=Corporate acquisitions=

Orchard Supply Hardware ceased to be a privately owned company when it and its seven stores were acquired by the conglomerate W.R. Grace and Company in 1979.{{cite news |url=https://www.proquest.com/docview/134364418 |title=W.R. Grace Acquisition |newspaper=Wall Street Journal |date=February 2, 1979 |page=17 |author= |url-access=subscription |id={{ProQuest|134364418}}}}

W.R. Grace began to sell off its 660-store retail division piecemeal in 1985.{{Cite news |last=Talley |first=Jim |date=December 11, 1985 |title=W.R. GRACE TO SELL ITS RETAIL DIVISION |work=Sun-Sentinel |url=https://www.sun-sentinel.com/news/fl-xpm-1985-12-11-8502260075-story.html |url-access=limited}} OSH and another hardware chain, Home Centers West, were sold to Wickes Companies in May 1986.{{cite news |url=https://www.chicagotribune.com/1986/05/07/wickes-buys-grace-units/ |title=Wickes Buys Grace Units |newspaper=Chicago Tribune |date=May 7, 1986 |author=}}{{cite news |url=https://www.nytimes.com/1986/05/06/business/wickes-to-acquire-2-wr-grace-units.html |title=Wickes to Acquire 2 W.R. Grace Units |newspaper=New York Times |date=May 6, 1986 |author=}}

Wickes had already owned the Builders Emporium hardware chain. It was restructuring after emerging from bankruptcy under the leadership of turnaround specialist Sanford Sigoloff. Under Wickes ownership, OSH grew to 31 stores in California, and was spun out again April 1989. The $134 million management buyout was led by OSH president Maynard Jenkins and Freeman Spogli & Company.{{cite news |url=https://www.latimes.com/archives/la-xpm-1989-04-13-fi-1846-story.html |title=Wickes to Sell Subsidiary: Wickes Cos. has agreed to sell... |newspaper=Los Angeles Times |date=April 13, 1989 |author=}}{{cite news |url=https://www.nytimes.com/1989/04/13/business/company-news-wickes-is-selling-hardware-division.html |title=Wickes Is Selling Hardware Division |newspaper=New York Times |date=April 13, 1989 |author=}}

In March 1993 OSH made an initial public offering on the New York Stock Exchange under the symbol ORH.{{Cite news |date=1993-03-29 |title=Equity Issues This Week |language=en-US |work=The New York Times |url=https://www.nytimes.com/1993/03/29/business/equity-issues-this-week.html |access-date=2023-07-10 |issn=0362-4331}} The same year OSH expanded into Southern California by acquiring several hardware stores from Builders Emporium chain when this former sibling chain went out of business.

OSH was purchased by Sears in 1996 after seven years of independence.{{cite news |url=https://www.baltimoresun.com/1996/08/16/sears-to-buy-60-california-hardware-stores/ |title=Sears to buy 60 California hardware stores |newspaper=Baltimore Sun |date=August 16, 1996 |author=}} By the end of 2000, OSH had grown to 274 stores.{{Cite report |url=https://www.sec.gov/Archives/edgar/data/319256/000031925601500010/cleanfinal10-k2000.htm |title=Form 10-K|date=December 30, 2000 |publisher=Sears, Roebuck and Co.}} In 2005, Sears sold a 19.9% interest in the company to Ares Management of Los Angeles for US$58.7 million, announcing expansion plans at the time.{{Cite web |url=http://goliath.ecnext.com/coms2/gi_0199-5544298/Growing-in-new-areas-Orchard.html |title=Growing in new areas: Orchard Supply Hardware celebrates 75 years of … |archive-url=https://archive.today/20120714115059/http://goliath.ecnext.com/coms2/gi_0199-5544298/Growing-in-new-areas-Orchard.html |archive-date=14 July 2012 |url-status=dead}}{{cite news |last=Friedman |first=Josh |title=Ares Buys 20% Stake in Orchard Hardware |url=https://www.latimes.com/archives/la-xpm-2005-oct-08-fi-osh8-story.html |newspaper=Los Angeles Times |date=October 8, 2005 |access-date=15 October 2013}} Ares had the option to later purchase another 30.2% stake in the company for US$126.8 million, but did not exercise this right. OSH had eighty-four stores at the time.

At roughly the same time, Sears Holdings announced that its Sears, Roebuck & Co. subsidiary expected to receive a dividend from OSH of about US$450 million. In connection with the initial investment, OSH was expected to issue US$405 million in debt. This debt was later cited as one of the primary reasons for its 2013 Chapter 11 filing.

Mark Baker took over leadership of OSH as President and CEO in March 2011. Mr. Baker was a veteran of the major hardware chains HomeBase, Home Depot, Scotty's, as well as Gander Mountain and Scotts Miracle-Gro companies.{{Cite press release |title=Orchard Supply Hardware Appoints Mark Baker President and Chief Executive Officer |url=https://www.businesswire.com/news/home/20110307007145/en/Orchard-Supply-Hardware-Appoints-Mark-Baker-President |access-date=July 9, 2023 |date=March 7, 2011}}

OSH was spun out of Sears Holdings in 2012 and became a public company.{{cite news |last=Said |first=Carolyn |title=Orchard Supply on its own again |url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/01/03/BURS1MKF27.DTL |access-date=17 June 2013 |newspaper=San Francisco Chronicle |date=January 4, 2012}} In January 2012 shares began trading on the Nasdaq stock market under the symbol OSH.

== Expansion ==

In April 2013, OSH expanded beyond California, opening stores in the suburban Portland metropolitan area of Oregon.{{cite news |last=Gunderson |first=Laura |date=June 17, 2013 |title=Most Orchard Supply Hardware stores to be bought out of bankruptcy |newspaper=The Oregonian |url=http://www.oregonlive.com/window-shop/index.ssf/2013/06/most_orchard_supply_hardware_s.html |url-status=dead |access-date=2013-06-27 |archive-url=https://web.archive.org/web/20131205012451/http://www.oregonlive.com/window-shop/index.ssf/2013/06/most_orchard_supply_hardware_s.html |archive-date=2013-12-05}}

=Bankruptcy and Lowe's acquisition=

On June 17, 2013, Orchard Supply Hardware announced it filed for Chapter 11 under the U.S. bankruptcy code and that most of its assets would be sold to the Lowe's Home Improvement chain for $205M in cash. Lowe's agreed to acquire no fewer than sixty of the (at the time) ninety-one Orchard Supply stores, operating them separately from Lowe's.{{cite news |last=Prasad |first=Sakthi |url=https://www.reuters.com/article/us-lowes-orchardsupply-idUSBRE95G03J20130617 |title=Orchard Supply files for bankruptcy, Lowe's steps in |publisher=Reuters |date=17 June 2013 |access-date= 2013-06-27}} At the close of the process, Orchard Supply remained a separate brand and operating entity from the Lowe's chain.

In August 2013, preparations were made to close seventeen of the ninety-nine stores.{{cite news |last=Radin |first=Rick |title=El Cerrito OSH store among those closing |url=http://www.mercurynews.com/business/ci_23877508/el-cerrito-osh-store-among-those-closing |newspaper=Mercury News |access-date=15 October 2013 |date=August 16, 2013}} Two of the stores were closed in June as a part of normal operations.{{cite news | url=https://www.bizjournals.com/sanjose/news/2018/08/22/orchard-supply-hardware-stores-closing-osh-low.html | title=San Jose-based Orchard Supply Hardware to close all stores by end of the year | first=Marlize | last=van Romburgh | work=American City Business Journals | date=August 22, 2018}}{{cite news |last=Siegal |first=Daniel |title=Orchard Supply Hardware store prepares to close - It's one of 17 stories being shuttered but for now, good deals abound. |url=http://articles.burbankleader.com/2013-09-27/news/tn-blr-orchard-supply-hardware-store-in-burbank-prepares-to-close-20130927_1_clearance-sale-orchard-supply-hardware-store-empire-center |newspaper=Burbank Leader |access-date=15 October 2013 |date=September 27, 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131007120439/http://articles.burbankleader.com/2013-09-27/news/tn-blr-orchard-supply-hardware-store-in-burbank-prepares-to-close-20130927_1_clearance-sale-orchard-supply-hardware-store-empire-center |archive-date=2013-10-07 }} This left seventy of the pre-Chapter 11 announcement stores still in operation. According to a company spokesperson, workers at the stores that closed were not eligible for severance pay due to the bankruptcy proceeding, but Orchard Supply is "providing incentive bonuses to key employees." Lowe's also committed to investing US$200 million in OSH over the next five years.

In November 2014, the company opened its first location in the city of San Francisco. The North Beach store located at 2598 Taylor St. was a former Petco and had a planned June 2015 opening. The store represented a new strategy for Lowe's to enter urban regions and markets using the OSH brand. This was following the opening of a store in the population dense Mid-Wilshire district of Los Angeles.{{cite news |last1=Donato-Weinstein |first1=Nathan |title=Orchard Supply snags first-ever San Francisco store in urban push |url=http://www.bizjournals.com/sanjose/news/2014/11/24/orchard-supply-snags-first-ever-san-francisco.html?page=all |access-date=4 January 2015 |publisher=San Jose Business Journal |date=Nov 24, 2014}} In 2016, Lowe's announced the expansion of the Orchard brand to South Florida.{{cite news |url=http://www.bizjournals.com/southflorida/news/2016/04/18/lowe-s-hardware-subsidiary-secures-first-south.html |title=Lowe's hardware subsidiary secures first South Florida location |work=South Florida Business Journal |date=April 18, 2016 |first=Brian |last=Bandell}}

== Lowes robotics ==

Via a technology program launched initially by Lowe's in 2014, OSH announced a pilot program using "robot employees" at their San Jose store at 377 Royal Ave.{{cite news |last1=Anderson |first1=Mae |title=Robots to assist customers at San Jose Orchard Supply Hardware store |url=http://www.mercurynews.com/business/ci_26815593/robots-helping-customers-at-san-jose-orchard-supply |access-date=4 January 2015 |agency=Associated Press |newspaper=San Jose Mercury News |date=29 October 2014}} The devices, called OSHbots, were supplied by a Mountain View company called Fellow Robots. The OSHbots resembled white columns with two large LCD screens and were equipped with 3D cameras, so they could identify items brought in by customers, and had wheels on either side that helped them move. Customers could research items on the screens and then the robot could lead them to the aisle where an item was located. The robots spoke English and Spanish and were connected to an inventory database so they could inform customers if an item was out of stock.{{cite news |last1=Bloom |first1=Jonathan |date=December 2, 2014 |title=SJ hardware store uses robot to help customers |work=KGO-TV |url=http://abc7news.com/technology/sj-hardware-store-uses-robot-to-help-customers/419533/ |access-date=5 January 2015}}

=Post-Lowes=

On August 22, 2018, Lowe's publicly announced that Orchard Supply Hardware would be closed down nationwide, and would begin liquidation.{{cite news |last1=Ellison |first1=Stephen |last2=Cull |first2=Ian |title=Orchard Supply Hardware Stores to Shut Down Nationwide |url=https://www.nbcbayarea.com/news/local/Orchard-Supply-Hardware-Stores-Shut-Down-Nationwide-491416532.html |work=NBC Bay Area |date=August 21, 2018 |language=en}} It said stores would be closed by the following February, and all had been closed by November.

== Outdoor Supply Hardware ==

In 2019, Central Network Retail Group (CNRG) purchased leases to 7 former OSH locations in the San Francisco Bay Area. New hardware stores in these locations were branded "Outdoor Supply Hardware", and kept a similar appearance and experience as the old OSH stores.{{Cite web |date=2019-05-02 |title=Orchard Supply Hardware to be revived — sort of |url=https://chainstoreage.com/store-spaces/orchard-supply-hardware-to-be-revived-sort-of |access-date=2020-10-31 |website=Chain Store Age |language=en}} CNRG bought the full "Orchard Supply Hardware" trademark in January 2020.{{Cite news |last=Meacham |first=Jody |date=January 23, 2020 |title=New OSH makes deal with old OSH owner Lowe's for hardware brand |work=American City Business Journals |url=https://www.bizjournals.com/sanjose/news/2020/01/23/new-osh-outdoor-supply-brand-expansion-lowes.html |access-date=July 9, 2023}}

Marketing

=Boxcar=

File:OSH Railroad Car in History Park (16702687698).jpg]]

In the early 1960s, the City of San Jose denied Al Smith permission to install a sign along Auzerais Street to promote his Orchard Supply Hardware store because a sign for the store already existed facing San Carlos Street. Undeterred, Smith bought a railroad boxcar from Southern Pacific, painted the car with the OSH logo, and placed it at the end of the spur track behind his store and alongside Auzerais Street. It remained in that spot for nearly 50 years, and was occasionally featured in OSH's promotional material. Recognizing its historic relationship to the San Jose community, OSH donated the boxcar to the California Trolley and Railroad Corporation in 2013 for display in History Park at Kelley Park.{{cite web |title=History San Jose -- "Railroad Steam Locomotive and Cars" |url=http://historysanjose.org/wp/plan-your-visit/history-park/railroad/}}{{cite news |title=Pizarro: Orchard Supply Hardware's historic boxcar will soon roll to new home |url=http://www.mercurynews.com/sal-pizarro/ci_23778860/pizarro-orchard-supply-hardwares-historic-boxcar-will-soon |first=Sal |last=Pizarro |newspaper=San Jose Mercury News |date=August 3, 2013}}

=Calendars=

Originally conceived as a marketing program, company president, Al Smith who had worked for the Southern Pacific Railroad, had a love of trains and is credited with the theme. One aspect that initially made these calendars unique was that all original paintings were commissioned as artwork for each month. The theme of these calendars has primarily been trains and railroad history, with only a few diversions, including the 1981 calendar which celebrated the Santa Clara Valley.{{cite journal |title=Inside cover notes |journal=2015 Orchard Supply Hardware Train Calendar |date=December 2014 |volume=40 |issue=1 |pages=2 }} Other images have featured landscapes, steam-powered machines, automobiles, historical drawings, produce from the Santa Clara Valley.

From 1975 until 1992,{{cite web |title=California State Railroad Museum -- "Sweet Stop: Mike Kotowski's Sugar Cane Trains of Hawaii" Exhibit |url=http://www.parks.ca.gov/Events/EventDetail.aspx?id=4440 |publisher=parks.ca.gov |access-date=9 April 2013|archive-url=https://web.archive.org/web/20130530165406/http://www.parks.ca.gov/Events/EventDetail.aspx?id=4440|archive-date=May 30, 2013}} railroad artist and local politician Michael Kotowski created each painting with the exception of the 1977 and 1979 calendars. The 1977 edition was a selection of “Still Live” paintings by the Santa Cruz Art League and the 1979 edition was a series of Southwestern style paintings by Northern California artist Anthony Quartuccio, Sr. The 1982 calendar had a flight and aviation theme called “Up, Up and Away” for which Kotowski created the original artwork even though it was not train related. Kotowski did the layout design and production on the entire series under his tenure as artist.

OSH's calendars have featured the works of twenty-three different artists who have created over 450 unique pieces including railroad artists such as Kotowski, John Winfield,{{cite web |last=Winfield |first=John |title=About |url=http://www.winfieldart.com/about |access-date=9 April 2013 |archive-url=https://web.archive.org/web/20130707071527/http://www.winfieldart.com/about |archive-date=2013-07-07 |url-status=dead }}{{cite journal |title=2013 Orchard Supply Hardware Calendar |journal=Annual Calendar |date=December 2012 }} James R Mann, 2017 Calendar,{{Cite web|url=http://www.jamesmannartfarm.com/jmas366.html|title = OSHX-1 Boxcar at San Jose watercolor illustration}} and Ken Muramoto; Muramoto has the distinction of being the youngest artist to provide paintings for the calendar.