Iconic home improvement retailer files for bankruptcy, announces sale plans

( WJET/WFXP ) — A well-known 75-year-old home improvement company entered into a sale agreement early Monday morning after filing for Chapter 11 bankruptcy.

True Value filed for Chapter 11 bankruptcy and has agreed to enter into a sale agreement with Do It Best. According to the filing, the company has anywhere from $500 million to $1 billion in liabilities to over 1,000 creditors, while claiming $100 million to $500 million in assets.

Several stores in our region are under the True Value brand, including West End Hardware and Ferriers True Value, both in Erie, as well as Fairview Hardware and North East True Value, just to name a few.

All stores will remain open, with business remaining unaffected, since the stores, except for one company-owned store in Palatine, Illinois, are independently owned and not directly a part of the Chapter 11 filing.

True Value has requested court approval to continue its current customer programs, including its Direct Ship Program, Rebate Program, Warranties Program, Rewards and Loyalty programs, and gift card programs.

“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,” said Chris Kempa, True Value’s Chief Executive Officer. “We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value.”

As part of the Chapter 11 filing, Do It Best will become the lead bidder, or “Stalking Horse Bidder.” The initial offer consists of a $153 million cash purchase price and the assumption of certain liabilities. This establishes the minimum for the bidding, and if no better offer is submitted, Do It Best’s bid will be declared the winner.

In the meantime, True Value has secured just over $15 million in funding to maintain its operations during the bidding process, which is expected to be completed by the end of the year.

This announcement comes just over six months after Do It Best approved a merger with United Hardware, which was a Midwest-based wholesale hardware distributor known for the “Hardware Hank” brand. According to the April press release, over 700 United Hardware locations maintained their independent brand locations during the merger.

Do It Best, based in Fort Wayne, Indiana, is a U.S.-based, member-owned cooperative in the home improvement industry. The company boasts annual sales of nearly $5 billion serving thousands of member-owned locations across the United States and more than 50 other countries.

True Value is headquartered in Chicago and is one of the world’s leading hardlines wholesalers with over 75 years of experience. The company has an international network of over 4,500 stores which are independently owned and operated.

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