Orchard Supply Hardware Stores to Become Standalone Chain

Sears will spin off company, pending approval by board
Posted June 24, 2011

Sears Holdings Corp. (Hoffman Estates, Ill.) is spinning off the Orchard Supply Hardware Stores Corp. into a separate, publicly-traded company. Sears acquired the California-based specialty retailer in 1996.

Sears said that the spin-off would be effected through a pro rata distribution to its shareholders of the Orchard common stock and preferred stock held by the company.

ESL Investments Inc., a hedge fund controlled by Sears Chairman Edward Lampert, will become Orchard's largest owner.

Orchard recorded net income of $8.72 million in fiscal year 2010 on revenues of $660.70 million.