BUSINESS
Wholesale hardware supplier True Value has officially filed for Chapter 11 bankruptcy, with plans to be sold to rival Do It Best by the end of the year. This strategic move aims to maximize the company’s value while continuing to support its network of independently owned retail stores.
Despite the bankruptcy filing, True Value's 4,500 retail locations will remain unaffected, as the wholesaler has committed to supplying products to these stores. The company, known for its extensive range of hardware, tools, lumber, plumbing, heating supplies, and other home improvement goods, has disclosed total liabilities ranging between $500 million and $1 billion in its Chapter 11 petition filed in Delaware bankruptcy court.
Chris Kempa, True Value's CEO, stated, "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." He emphasized that the agreement with Do It Best, a company with a similar legacy in the home improvement industry, represents a beneficial step for True Value's associates, customers, and vendor partners.
Do It Best, based in Fort Wayne, Indiana, has agreed to act as a "stalking horse" bidder for True Value's assets. Under this arrangement, True Value remains open to competing bids. Do It Best's offer includes $153 million in cash, the assumption of approximately $45 million in contracts and obligations, and plans to hire some of True Value's employees.
As the situation develops, industry watchers will be keen to see how this transition unfolds and impacts the broader home improvement market.
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