Orchard Supply Hardware, headquartered in San Jose since 1931, declared bankruptcy Monday, but the city may not lose the historic business.

The Silicon Valley Business Journal reported that OSH filed Chapter 11 bankruptcy, but Lowe’s seeks to buy 60 of the approximately 90 California stores for about $205 million and act as a parent company, according to Orchard’s statement.

“Overall, Orchard’s business model offers great potential, but it has been burdened with a high level of debt,” Robert Niblock, Lowe’s president and CEO said in a statement, according to the San Jose Mercury News. “With the debt addressed through the Chapter 11 process and appropriate support from Lowe’s, we believe that Orchard will be positioned for profitable growth as a standalone business within our portfolio.”

Lowe’s plans to operate as a parent company with OSH holding onto its brand, management team and associates. The Biz Journal stated that OSH will also avoid layoffs once Lowe’s takes over.

In a company statement, OSH stated that store operations will remain virtually unchanged. Lowe’s wants to purchase the company because its small neighborhood stores meet the needs of local customers, and commercial real estate brokers told the Biz Journal that Lowe’s is expected to retain most, if not all, of the San Jose-based Orchard stores. 

“Orchard’s neighborhood stores are a natural complement to Lowe’s strengths in big-box retail,” Niblock said.

Orchard reportedly secured $177 million in debtor-in-possession financing from Wells Fargo to continue meeting financial obligations, according to the Biz Journal.