Oct. 14, 2024 /
Hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best. If approved, the deal would create a network of 8,000 stores in the United States and around the world. File Photo by Ammodramus via Wikimedia Commons
Oct. 14 (UPI) -- Long-time hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best.
The home improvement industry deal, if approved, would create a network of more than 8,000 stores in the United States and around the world.
"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," said Chris Kempa, True Value's chief executive officer.
"We believe that entering the process with an agreed offer from Do it Best, which has a similar decades-long history in the home improvement space and also operates with a focus on supporting members and helping them grow, is the most beneficial next step for True Value and our associates, customers and vendor partners," Kempa added. "We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value."
True Value, which is based in Chicago and has been in the home improvement business for more than 70 years, was founded in 1948 and serves more than 4,500 stores worldwide with total retail sales of $10 billion, according to the company.
In 2017, Ace Hardware expressed an interest in buying True Value, amid reports True Value was considering putting itself up for auction with a potential asking price of $800 million. Ace Hardware is also based in Illinois.
True Value currently operates as a wholesaler cooperative that sells its products to hardware sellers and garden centers. Independently owned True Value stores are not part of the bankruptcy.
If Do it Best is the winning bidder for True Value's assets, the transaction could be on track to close by the end of the year, pending regulatory and court approval.
"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," said Dan Starr, Do it Best president and CEO.
"Do it Best has a proven track record of driving profitability through the most efficient operations in the industry," Starr added. "This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come."
True Value declares bankruptcy and sells itself to a hardware rival
True Value is selling "substantially all" of its business to rival Do it Best.
· CNN Business · Helen H. Richardson/The Denver Post/Getty Images
Jordan Valinsky
Updated Mon, October 14, 2024
True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday.
In a press release, True Value said it will continue day-to-day operations of selling hardware and other homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.
True Value said its stores will remain open, because they are not part of the bankruptcy proceedings.
In bankruptcy court filings, True Value said it faces a significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware. Bigger rivals like Home Depot and Lowe’s have also been in a yearslong slump since the pandemic boom, but they remain in a significantly stronger financial situation than True Value.
Still, a number of other chains have voiced similar problems that also tipped them into bankruptcy, including Big Lots and LL Flooring.
“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,” said True Value CEO Chris Kempa in a release.
Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.
“Do it Best has a proven track record of driving profitability through the most efficient operations in the industry,” said Do it Best CEO Dan Starr in a statement. “This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
The transaction with Do it Best is expected to close by the end of the year, unless there’s better offers.
Updated Mon, October 14, 2024
True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday.
In a press release, True Value said it will continue day-to-day operations of selling hardware and other homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.
True Value said its stores will remain open, because they are not part of the bankruptcy proceedings.
In bankruptcy court filings, True Value said it faces a significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware. Bigger rivals like Home Depot and Lowe’s have also been in a yearslong slump since the pandemic boom, but they remain in a significantly stronger financial situation than True Value.
Still, a number of other chains have voiced similar problems that also tipped them into bankruptcy, including Big Lots and LL Flooring.
“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,” said True Value CEO Chris Kempa in a release.
Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.
“Do it Best has a proven track record of driving profitability through the most efficient operations in the industry,” said Do it Best CEO Dan Starr in a statement. “This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
The transaction with Do it Best is expected to close by the end of the year, unless there’s better offers.
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