Privately held hardware wholesaler True Value has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware as it prepares to sell “substantially all” of its business operations to rival Do it Best Corp. During the reorganization process, the 75-year-old retailer will continue to operate its 4,500 stores, which are independently owned, except for a corporate-owned location in Palatine, Ill.
True Value has designated Do it Best as the lead or “stalking horse” bidder and initiated a competitive bidding process under Section 363 of the Bankruptcy Code. True Value plans to use cash collateral to fund operations during the bankruptcy and purchase processes, which are expected to be completed by the end of 2024. True Value has received a commitment from Do it Best for additional operating funds if needed.
“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, CEO of True Value in a statement. “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.”
For its fiscal year ending June 29, 2024, Do it Best had net sales of $4.47 billion. The company serves thousands of member-owned locations in the U.S. and in more than 50 other countries, according to a company statement.
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