Initiates the Chapter 11 process to complete the value-maximizing transaction

We continue to serve independent True Value retail stores and other customers as usual

CHICAGO, Oct 14, 2024 /PRNewswire/ — True Value Company, LLC (“True Value” or the “Company”), one of the world's leading hardline wholesalers, today announced that it has entered into an agreement to sell substantially all of the Company's home business operations Improvement industry peer Do it Best Corp.

In order to complete the sale as efficiently as possible, True Value and certain of its affiliates have commenced voluntary Chapter 11 proceedings in the United States Bankruptcy Court for the District Delaware. True Value will continue its day-to-day operations serving 4,500 independent retailers who trust True Value for the right products, trusted expertise and its 75-year-old iconic brand.

“After a thorough evaluation of strategic alternatives, we concluded that selling our business is the right path to maximize value and best serve our retail partners and other stakeholders going forward,” he said Chris KempaCEO of True Value. “We believe that starting the process with an agreed offer from Do it Best, which has a similar decades-long experience in the home improvement sector and also focuses on supporting members and helping them grow, is the most beneficial next step for True Value and our employees, customers and supplier partners We thank these valued stakeholders for their continued loyalty as we work to ensure a stronger future for True Value.

True Value's sale process is the next step in a series of actions the company has taken in 2024 to better position the company and its iconic brand for the long term, including modernizing its legacy operations, increasing efficiency and investing in additional marketing campaigns.

“A successful acquisition of True Value assets would be a strategic milestone for Do it Best and home improvement retailers around the world,” he said Dan StarrDo it Best, President and Chief Executive Officer. “Do it Best has a proven track record of increasing profitability through the most efficient operations in the industry. This acquisition, if completed, would provide True Value and independent home improvement stores with the greatest growth opportunities in the coming years.”

The agreement with Do it Best, which came about after a robust marketing process, provides for a significant cash payment and a meaningful assumption of liabilities related to the ongoing business. The Company requests that Do it Best be designated as a “stalking horse” or primary bidder and that a competitive bidding process be initiated pursuant to Section 363 of the Bankruptcy Code to obtain the highest or otherwise best value for the Company. In order to support day-to-day operations through the sale, the company would like to use its cash collateral to finance operations. To the extent that True Value requires additional financing during the process, the company has received a commitment from Do it Best to provide additional capital.

The company is also filing a series of customary motions with the court to honor its obligations to its stakeholders during the process. These “first day” requests include requests to continue paying wages, providing benefits to employees as part of regular business operations, and offering essential customer programs. The Company expects to make standard payments to Sellers for approved goods and services performed upon submission.

The company aims to complete the sales process by the end of the year.

True Value stores are independently owned and are not part of the Chapter 11 process, with the exception of one company-owned store in Palatine, IL.

Court records and other information about the litigation can be found at https://omniagentsolutions.com/TrueValue. Providers with questions can call (866) 771-0561 (U.S. & Canada) or +1 (818) 356-8633 (international) or email (email protected).

Skadden, Arps, Slate, Meagher & Flom LLP, Glenn Agre Bergman & Fuentes LLP, and The young Conaway stargat & Taylor, LLP is acting as legal advisor, M3 Partners, LP is acting as financial advisor and Houlihan Lokey serves as the company's investment banker.

About True Value Company

True Value Company, headquartered in Chicago, is one of the world's leading hardlines wholesalers. The globally recognized brand with over 75 years of experience is proud to empower independent retailers in their local communities and become a symbol of strength and resilience that customers recognize and trust.

True Value Company has an international network of 4,500 independent stores committed to providing customers with exceptional products and expert advice for their DIY and home maintenance projects.

While maintaining the independent spirit and community focus, operations have expanded significantly, giving local stores the freedom to stock essential products and provide services for business growth while maintaining the trusted, trusted brand.

True Value is not just a chain of stores, True Value is your trusted partner for everything hardware related.

Media contacts:

Nadia Hill
Communications Manager | Companies with real added value
(email protected)

Sherri L. Toub / Wendi Kopsick
Cookies CNC
(email protected)

SOURCE True Value Company

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