True Value Company LLC announced that it filed for bankruptcy and will sell its business operations to home improvement industry peer Do it Best Corp.
The company will continue its day-to-day operations serving 4,500 independently owned retailers, and none of the stores face closing except for a company-owned location in Palatine, Illinois. The company requested Do it Best have the designation of a “stalking horse,” or lead, bidder and to initiate a competitive bidding process under Section 363 of the Bankruptcy Code.
The Chicago-headquartered True Value Company is an American wholesaler that uses multiple retail identities including True Value, Grand Rental Station, Party Central, and Taylor Rental, Induserve Supply, and Home & Garden Showplace. The wholesaler supports its retailers through 13 regional distribution centers and approximately 2,500 employees in 60 countries.
“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 Company’s CEO. “We believe that entering the process with an agreed offer from Do it Best, who 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. We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value.”
“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’s president and CEO. “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.”
Photo: Mike Mozart / Flickr Creative Commons
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