Orchard Supply Hardware supplies California's do-it-yourselfers. It operates more than 85 home centers in the Golden State, from Los Angeles to Redding in the north, as well as an online store. More than its name implies, Orchard Supply Hardware (OSH) offers products in several home improvement categories, including garden and nursery; heating, cooling, insulation, and ventilation; home safety and emergency preparation; plumbing; and renovation and decoration. OSH's folksy stores sell Sears' Craftsman brand tools (as well as many other brands), and several locations stock home appliances. Founded in 1931 as a farmers' purchasing cooperative in San Jose, OSH was spun off by Sears Holdings in 2012.
Sears Holdings, the parent of ailing retailers Sears Roebuck and Kmart, owned about 80% of OSH before spinning it off as a publicly traded company. Under the terms of the spinoff, Sears' shareholders received one share of Orchard Class A common stock and one share of preferred stock for every 22.14 shares they hold of Sears.
The separation of OSH from ailing Sears should provide the hardware chain with increased business flexibility and a more focused management team and strategy. OSH did not receive any proceeds from the $82 million stock offering. – less