But the True Value brand will live on
of ConsumerAffairs
True Value, a wholesaler that sells merchandise to independently owned hardware stores, is selling many of its assets to rival Do It Best, Inc.
The company said the most efficient way to do that is to file for Chapter 11 bankruptcy protection. It said True Value will continue its day-to-day operations serving 4,500 independently owned retailers.
"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 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.
Company history
True Value started as four hardware cooperatives and a hardware wholesaler: American Hardware & Supply (ServiStar), Coast to Coast Corporation, Cotter & Company (True Value), and the Midwest-based Hibbard Spencer Bartlett & Company.
John Cotter started Cotter & Companyin 1948 and operated 12 stores. The cooperative grew over the next 14 years and, in 1962, acquired the Hibbard Spencer Bartlett & Company and rights to the True Value trademark.
True Value said the sale is the next step in a series of actions taken in 2024 to better position the business and its brand for the long term, including modernizing its legacy operations, driving greater efficiencies, and investing in additional marketing campaigns.
The company is requesting designation of Do it Best as the "stalking horse," or lead, bidder and to initiate a competitive bidding process under Section 363 of the Bankruptcy Code, designed to achieve the highest or otherwise best value for the company.
True Value said it will seek to use its cash collateral to support day-to-day business through the period of time it takers the sale to close.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-14 19:46:04
