True Value’s Sale to Do It Best: What Chapter 11 Means for Retailers

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In a significant development for the home improvement sector, True Value, a long-standing name in hardware, has announced its plans to sell its operations to industry peer Do It Best Corp. The transaction comes amid True Value’s voluntary Chapter 11 bankruptcy proceedings. This move has sparked discussions across the retail and home improvement industries, with many asking what this means for the future of both companies and the independent retailers that have long relied on True Value for products and support.

A Strategic Decision for Long-Term Viability

True Value’s decision to file for Chapter 11 bankruptcy and sell its business to Do It Best isn’t a sudden or hasty move. It follows a year of strategic adjustments aimed at modernizing operations and driving greater efficiencies. According to True Value’s CEO, Chris Kempa, the sale was the best way to maximize value and secure the company’s future while continuing to support its 4,500 independent retailers.

The sale to Do It Best was not a spur-of-the-moment decision. It came after a robust marketing process designed to find the best possible buyer for the business. This deal includes significant cash considerations and assumes certain liabilities, meaning that Do It Best is committed to continuing True Value’s legacy while also driving profitability.

The Impact on Independent Retailers

One of the most pressing concerns surrounding the sale is how it will affect the independently owned True Value stores. Fortunately, the sale agreement specifically states that these stores will not be involved in the Chapter 11 proceedings. The independently owned stores will continue to operate as usual, with no interruptions to product supply, service, or support. This means that for the customers of True Value stores, it’s business as usual—offering the same trusted products and services that have defined the True Value brand for over 75 years.

In fact, both True Value and Do It Best see this sale as a win for independent retailers. Do It Best President and CEO Dan Starr expressed that the acquisition would strengthen the position of independent hardware stores, giving them even greater opportunities for growth and success in an increasingly competitive market.

 

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What Chapter 11 Means for True Value’s Operations

Chapter 11 bankruptcy allows companies to restructure while continuing operations, and True Value has positioned itself well to move through this process efficiently. The company’s day-to-day operations are set to continue without disruption, and True Value is seeking approval from the U.S. Bankruptcy Court for the District of Delaware to use its cash collateral to fund operations during the sale process. If needed, Do It Best has also committed to providing additional capital to support the business.

This kind of bankruptcy is not uncommon for large corporations seeking to reorganize while maximizing the value of their assets. In True Value’s case, the decision allows the company to complete the sale to Do It Best while ensuring that its commitments to employees, vendors, and customers are maintained. The company’s goal is to finalize the sale by the end of 2024, providing a clearer path for both companies and their stakeholders.

Why This Sale Matters for the Home Improvement Industry

The home improvement sector has seen significant changes over the past few years, driven by shifts in consumer behavior, economic factors, and the overall housing market. True Value’s sale reflects a broader trend of consolidation in the industry, where companies are seeking partnerships or acquisitions to bolster their market presence and profitability. With rising competition from major players like Home Depot and Lowe’s, smaller hardware companies are finding it necessary to explore new avenues for growth.

True Value and Do It Best are both companies with deep roots in the home improvement space, and their combined efforts could provide a powerful alternative for independent retailers. By leveraging each company’s strengths—True Value’s iconic brand and Do It Best’s operational efficiencies—they are poised to create a stronger presence in the market. This could help independent retailers remain competitive against larger chain stores and online retailers, which have been gaining market share.

The Future for Do It Best and True Value

Do It Best, a cooperative of hardware stores, has built a reputation for supporting independent retailers with efficient operations and a strong supply chain. The acquisition of True Value is a strategic move that will allow Do It Best to expand its reach and provide even greater resources for its members.

For True Value, the sale represents a new chapter—one that could enable the brand to continue thriving under new ownership. By selling the business to a like-minded company, True Value ensures that its retailers and customers will continue to benefit from the company’s extensive product offerings and strong support systems.

True Value’s CEO, Chris Kempa, emphasized that this sale is not just about survival but about positioning the company for long-term success. The acquisition by Do It Best provides a path forward for both True Value and its retailers, giving them the resources and support they need to grow.

What Retailers Should Know Moving Forward

For True Value’s 4,500 independent stores, this sale should be seen as an opportunity rather than a disruption. Do It Best’s commitment to supporting independent retailers is well-established, and the synergies between the two companies could result in better pricing, more product options, and stronger marketing support.

The independently owned stores can continue to operate under the True Value name and should not experience any significant changes to their day-to-day operations. With the backing of Do It Best, these stores are expected to remain competitive in a market that continues to evolve rapidly.

Final Comments

True Value’s sale to Do It Best is a strategic move that highlights the importance of adaptability in today’s retail landscape. For independent retailers and home improvement enthusiasts, this transition is likely to bring more opportunities for growth, better resources, and a stronger position in the industry. As True Value moves through its Chapter 11 proceedings, the home improvement industry will be watching closely to see how this partnership shapes the future for both companies and their retailers.