True Value Company Enters Sale Agreement with Do it Best Amid Chapter 11 Proceedings
CHICAGO, Oct. 14, 2024 – True Value Company, a prominent player in the hardlines wholesale sector, has officially announced its decision to sell the majority of its business operations to fellow home improvement company, Do it Best Corp. This significant move comes as True Value initiates voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, aiming to facilitate a smooth and efficient sale process.
Despite the legal restructuring, True Value reassures its commitment to its network of 4,500 independently owned retail stores, which depend on the company for quality products and reliable expertise. The company has been a trusted name in the industry for over 75 years, and its iconic brand continues to serve its customers as usual during this transition.
Chris Kempa, the Chief Executive Officer of True Value, expressed the company’s rationale behind the decision, stating, “After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future.” Kempa emphasized the importance of the agreed offer from Do it Best, highlighting their shared commitment to supporting their respective members and fostering growth within the industry.
True Value’s decision to pursue this sale is part of a broader strategy initiated in 2024 to enhance the company’s operations and brand positioning. This includes modernizing legacy systems, improving operational efficiencies, and investing in marketing efforts to better connect with consumers.
Dan Starr, President & CEO of Do it Best, commented on the acquisition, stating, “A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world. Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
The sale agreement, which was reached after a comprehensive marketing process, includes substantial cash consideration and the assumption of significant liabilities associated with the ongoing business. True Value is seeking to designate Do it Best as the “stalking horse” bidder, initiating a competitive bidding process under Section 363 of the Bankruptcy Code.
This development marks a pivotal moment for True Value Company as it navigates through these challenging times while aiming to secure a stronger future for its operations and stakeholders. The outcome of the bidding process will be closely monitored by industry experts and stakeholders alike, as it will determine the next chapter in the legacy of True Value and its role in the home improvement market.
As the situation unfolds, True Value remains dedicated to maintaining its service levels and supporting its retail partners, ensuring that they continue to receive the products and expertise they have come to expect from the brand. The company is poised to leverage this strategic move to enhance its operational framework and ultimately provide better value to its customers in the long run.
