It’s been a difficult year for Lowe’s. The home improvement retailer has been forced to close dozens of stores and lay off thousands of employees. Now, it looks like the company may be getting rid of one of its most popular brands.
According to a report from Bloomberg, Lowe’s is considering selling its Kobalt tool business. Kobalt is a relatively new brand for Lowe’s, having only been launched in 2006. But it’s become one of the company’s most successful lines, with a wide range of products that are popular with both professional contractors and do-it-yourselfers.
Lowe’s acquired Kobalt as part of its purchase of the Canadian home improvement chain Rona in 2016. Rona had been selling Kobalt tools in its stores for several years, and Lowe’s saw the brand as a way to appeal to younger shoppers.
Now, however, it seems that Lowe’s may be ready to part with Kobalt. The company is reportedly in talks with several private equity firms about a possible sale. It’s not clear how much Lowe’s would fetch for the brand, but analysts believe it could be worth up to $1 billion.
A sale of Kobalt would be just the latest in a series of divestitures by Lowe’s. In recent years, the company has sold off its Orchard Supply Hardware and Albertsons businesses. And earlier this year, it announced plans to close 51 underperforming stores in the U.S. and Canada.
It’s unclear what would happen to Kobalt if it were sold off by Lowe’s. It’s possible that the brand would be shut down entirely, or that it would be sold to another retailer. Either way, it would be a loss for Lowe’s, which has invested heavily in Kobalt over the past few years.
So far, there’s no word from Lowe’s on the possible sale of Kobalt. But with the company under pressure to boost its stock price, anything is possible at this point.
Is Lowe’s Getting rid of Kobalt?
It looks like the company may be getting rid of one of its most popular brands.
According to a report from Bloomberg, Lowe’s is considering selling its Kobalt tool business.
Kobalt is a relatively new brand for Lowe’s, having only been launched in 2006.
But it’s become one of the company’s most successful lines, with a wide range of products that are popular with both professional contractors and do-it-yourselfers.
Lowe’s acquired Kobalt as part of its purchase of the Canadian home improvement chain Rona in 2016.
Rona had been selling Kobalt tools in its stores for several years, and Lowe’s saw the brand as a way to appeal to younger shoppers.
now, however, it seems that Lowe’s may be ready to part with Kobalt.
According to Bloomberg analysts – a sale could be worth up to 1 billion dollars.
If sold – it is unclear what would happen to the brand or where it would go.
