CHARLOTTE, N.C. — It’s becoming increasingly clear that a major shakeup is underway for one of the Charlotte region’s largest companies.
[ [Class action lawsuit filed against Lowe's over 401K investment funds] ]
Lowe’s Cos. Inc. confirmed this morning as it reported second-quarter earnings that it will close all 99 of its Orchard Supply Hardware stores, a West Coast chain the home-improvement giant acquired about five years ago. Word of Orchard Supply’s demise got out late yesterday, with TV news reports in the San Francisco Bay Area pointing to the looming closures and The Mercury News out of San Jose, California, following up with confirmation from a Lowe’s spokeswoman.
“While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy,” says Marvin Ellison, the newly installed CEO of Lowe’s, in the company’s news release on earnings. “We will be providing outplacement services for impacted associates, and they will be given priority status if they choose to apply for other Lowe’s positions.”
Lowe’s stock was down about 1% in premarket trading, hovering around $98.73 just before the opening bell after closing at $99.74 yesterday. CNBC notes Lowe’s earnings and revenue exceeded analysts’ expectations, but same-store sales fell short of the target.
[ [Here's what Lowe's new CEO will receive in salary and stock] ]
Separate from its earnings report, Lowe’s announced David Denton has been named chief financial officer.
Read more here.
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