New Lowe’s Cos. Chief Executive Officer Marvin Ellison decided to shut down a division of smaller stores and eliminate $500 million in capital projects that will be returned to shareholders, Bloomberg News reported. The decision to close all 99 Orchard Supply locations - along with a plan to revamp the inventory at the company’s namesake hardware stores — led the company to cut its annual forecast. The retailer sees home-price gains driving business and plans to cut costs while investing in “retail fundamentals.” The acquisition of Orchard Supply, with hardware stores based mainly on the west coast, accelerated the company’s expansion into key markets like California. But it came at a price as the chain, which Lowe’s purchased out of bankruptcy for about $205 million, was often a drag on results. For the shutdown of the unit, to be completed by the end of this year, Lowe’s took a $230 million charge last quarter, and it expects additional costs of as much as $475 million in the second half of the year.
