Orchard Supply Hardware Stores Corp. filed for chapter 11 protection, with rival retailer Lowe's Companies set to buy the majority of its assets for $205 million in cash, Reuters reported today. Orchard, which was spun off by Sears Holdings Corp in late 2011, said that it was carrying a high debt load and that it may not be in a position to make scheduled payments when the first tranche of its debt matures in December 2013. The company, which generated revenue of $657 million in the 2012 fiscal year, listed total liabilities of $480.1 million and total assets of $441 million, according to a court filing. The company said that Lowe's would act as the stalking-horse bidder in an auction of Orchard's assets.
