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Orchard Supply Hardware Stores Corp., the operator of 91 hardware stores with a $205 million offer from Lowe’s Cos. for at least 60 of them, won court approval to hold going-out-of-business sales at eight underperforming stores and potentially another 22, Bloomberg News reported on Friday. Bankruptcy Judge Christopher Sontchi at a hearing on Friday approved the company’s agreement with liquidator Great American Group, which yesterday won an auction for the right to run the store closing sales. A joint venture of liquidators Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC made an initial offer for a 74 percent recovery on assets to be sold, according to court papers.

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.

Orchard Supply Hardware Stores Corp. (OSH), the chain spun off by Eddie Lampert’s Sears Holdings Corp. 17 months ago, is considering filing for bankruptcy as soon this week, Bloomberg News reported on Saturday. The chain is also continuing talks with lenders on a restructuring of about $261 million in debt and capital lease obligations. Orchard Supply, based in San Jose, Calif., said in October that it had hired Moelis & Co. to help refinance its senior secured loan. It has posted a combined loss of $132.8 million in the past two years. Lampert and his RBS Partners LP fund together hold the biggest stake in the company, with about 21 percent of the shares outstanding as of May 13, according to regulatory filings.

Wal-Mart Stores Inc. and Costco Wholesale Corp. are among more than 500 merchants objecting to a $7.25 billion antitrust settlement with credit card firms over swipe fees, saying that the deal is meaningless as long as card companies can fix fees charged retailers on each transaction, Bloomberg News reported yesterday. Sears Holdings Corp., Target Corp., TJX Cos. and Barnes & Noble Inc. also have opposed the agreement being considered by a federal judge. The settlement, estimated by plaintiffs to be the largest ever in an antitrust case, could receive final approval after a Sept. 12 hearing. The effort by companies follows years of tensions over the fees, which amount to as much as two percent of every sale where a customer pays with a card. Major retailers and trade associations contend that the deal isn’t nearly big enough and unfairly binds all merchants nationwide against suing over the fees in the future.

U.S. District Judge Andrew Carter ruled yesterday that Borders owes nothing to holders of roughly $210.5 million of gift cards that had not been used by the time the bookstore chain shut down, Reuters reported yesterday. Judge Carter said that it would be unfair to other creditors of the former Borders Group Inc. to let gift card holders pursue recoveries from the bankruptcy estate. To do so, Carter explained, could upset a liquidation by Borders' bankruptcy trustee that is already "substantially" completed. He also said that card holders failed to prove they met all the requirements for an exception, including that unsecured creditors whose interests might be harmed had been notified about the litigation and given a chance to object.

Supporters of a bill that would broaden states’ ability to collect sales tax on online purchases acknowledge they face a tough battle in the House, The Hill reported today. The measure, called the Marketplace Fairness Act, looks to be on the way to passage in the Senate, with a final vote likely in early May. But while Democratic leaders in the Senate supported the bill enough to bypass the Finance Committee and bring it straight to the floor, the GOP in the House has so far shown little interest in the measure. The House is also unlikely to follow the Senate’s lead in sidestepping the committee process on the online sales tax bill. The Marketplace Fairness Act, for which retail groups and state government organizations have lobbied extensively, would allow states to collect sales tax revenue from Internet retailers throughout the country.

Cash-strapped J.C. Penney Co. drew $850 million from a credit line to help fund its day-to-day operations, buying time for new chief executive Myron "Mike" Ullman to reverse sagging sales at the department store operator while it looks for ways to raise additional capital, the Wall Street Journal reported today. J.C. Penney yesterday said it drew down nearly half of a $1.85 billion revolving credit facility provided by its banks. The borrowed money, which is secured by inventory, credit card receivables and other assets, will be used to pay for inventory and other costs as the chain renovates its home departments. In February Penney got banks to increase the size of its credit facility, which matures in April 2016.

Lawyers for plaintiffs in a Visa Inc. and MasterCard Inc. antitrust case over interchange fees asked for final approval of a settlement along with $720 million in legal fees and $27 million in expenses, Bloomberg News reported on Friday. The attorneys, representing a class of more than 7 million merchants, filed papers in court on Thursday seeking a final blessing for the accord from U.S. District Judge John Gleeson. The settlement, estimated to be the largest ever in an antitrust case, would provide for about $7.25 billion in cash payouts, according to a memorandum filed by Robbins Geller Rudman & Dowd LLP, one of the lead law firms in the case. Merchant trade groups and some large retailers including Target Corp., Wal-Mart Stores Inc., Home Depot Inc. spoke out against the accord, claiming it is not large enough and gives card companies too much leeway to raise fees in the future. The lawsuit alleged that the card companies and some of the country’s largest banks conspired to fix prices of fees paid by merchants when customers pay with plastic.

J.C. Penney Co. has hired bankers at Blackstone Group LP for advice on how the department-store chain can shore up its fast-eroding stockpile of cash, the Wall Street Journal reported today. Bond analysts do not think Penney's operations will be able to generate enough cash to cover the company's needs beyond a year, putting pressure on new Chief Executive Myron "Mike" Ullman to cut costs and look for ways to raise new capital even as he tries to get more shoppers into stores. The company is seeking to raise about $1 billion in cash. One option could be to sell a minority stake in Penney, and the company has reached out to and heard from possible investors including private-equity firms.

Websites critical of a settlement that Visa Inc. and MasterCard Inc. reached with retailers over swipe fees are misleading and must be corrected, a federal judge ruled, Bloomberg News reported yesterday. The sites contain "bad information" that may have caused some retailers to drop out of the settlement, U.S. District Judge John Gleeson said yesterday. He gave the parties a week to decide on changes. Sites at issue include Merchantsobject.com and home sites for the trade groups National Community Pharmacists Association, National Grocers Association and the National Association of Convenience Stores, among others, according to court filings submitted by the plaintiffs’ lawyers. The sites provide one-sided information encouraging retailers to object and opt out and don’t fully explain consequences of those actions, the plaintiffs’ lawyers said. While opting out allows merchants to pursue their own lawsuits against the credit card firms, it deprives them of the ability to receive payments for damages under the settlement, the lawyers said.