True Value’s Next Chapter: A New Partner and New Beginnings

True Value, a long-standing name in the home improvement world, has recently taken a significant step. The company, based in Chicago, has filed for Chapter 11 bankruptcy and agreed to a sale. But here’s the twist: they’re not going down alone. They’ve partnered with Do It Best, another big player in the industry. Why the change? Well, True Value has a lot on its plate. They owe a ton of money — somewhere between $500 million and $1 billion — to over 1,000 different creditors. On the flip side, they claim to have assets worth between $100 million and $500 million. But don’t worry, your local True Value store isn’t closing down. Most of their stores are independently owned, so they won’t be directly affected by the bankruptcy. In fact, True Value has a massive network of over 4,500 stores worldwide. What about your rewards and gift cards? True Value wants to keep those programs running. They’ve asked the court for permission to continue with their Direct Ship Program, Rebate Program, Warranties Program, Rewards and Loyalty programs, and gift card programs.

Chris Kempa, the CEO of True Value, thinks this is the best move forward. He said, “We believe entering the process with an agreed offer from Do it Best is the most beneficial next step for True Value and our associates, customers, and vendor partners.” So, what’s the deal with Do It Best? They’re the lead bidder in this process, which means they’ve put an offer on the table. They’re willing to pay $153 million in cash and take on certain liabilities. If no better offer comes along, Do It Best’s bid wins. Dan Starr, the CEO of Do It Best, feels this could be a game-changer for both companies. He said, “This acquisition would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.” True Value has secured over $15 million to keep things running during the bidding process, which should wrap up by the end of the year. Interestingly, Do It Best has been busy. Just six months ago, they merged with United Hardware, known for the “Hardware Hank” brand. This move kept over 700 United Hardware locations independent. Do It Best is a big deal. Based in Fort Wayne, Indiana, they’re a member-owned cooperative with annual sales of nearly $5 billion. They serve thousands of locations across the U.S. and over 50 other countries.

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