Orchard Supply Hardware Stores (OSH) announced that it has reached an agreement through which Lowe's (LOW) will acquire the majority of its assets for $205M in cash, plus the assumption of payables owed to nearly all of Orchard's supplier partners. To facilitate the sale and restructure its balance sheet, Orchard has filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. Orchard fully expects to operate its overall business and the vast majority of its stores as usual during its financial restructuring. To this end, the company has secured commitments for $177M in debtor-in-possession, or DIP, financing from Wells Fargo Bank, the company's existing ABL lender, and its Term Loan Lenders which, in addition to Orchard's ongoing cash flow, will ensure it is able to continue meeting its financial obligations throughout the Chapter 11 case. Under the Lowe's proposal, Orchard will retain its brand, continue to operate its stores and continue its repositioning and growth strategy as a standalone business.