Lowe's, though, could be the big winner here, stepping in as a "stalking horse" bidder and setting the floor for any subsequent bids Orchard Supply may get. It's offered to pay $205 million for the hardware store chain, as well as take over payables for all of its suppliers, just as California's housing market turns on the afterburners. Median home sale prices in the state surged more than 22% year over year in April followed by a 26% spike in May. Lowe's will be acquiring a retailer that will feature a much lower cost structure after its debt is shed in bankruptcy, allowing it to capitalize on the new housing boom. Yet even with lower costs, Lowe's isn't guaranteed a successful outcome. Efforts at trying to hoodwink the public into believing a large national operation is still a small, hometown chain isn't anything new. In addition to Orchard Supply, Sears also spun off its home appliances, hardware, tool, and lawn and garden equipment retailer Sears Hometown & Outlet Stores.