True Value, a well-established hardware company with a 75-year history based in Chicago, has initiated Chapter 11 bankruptcy proceedings as part of its strategy to sell itself to rival Do It Best Corp. The announcement was made by the company on Monday.
Despite the bankruptcy filing, True Value assured that it would continue to operate normally, supplying products to its 4,500 independent retail locations, most of which will remain open. Only one store is owned by the company itself.
Chris Kempa, True Value’s Chief Executive Officer, expressed confidence that this decision, facilitated by a preliminary agreement with Do It Best—a company with a similar longstanding presence in the home improvement industry—will ultimately benefit True Value’s employees, customers, and partners. He extended gratitude to their loyal stakeholders during this transitional period aimed at ensuring a stronger future for the brand.
Legal documents reveal that Do It Best is making a bid of $153 million for True Value and has agreed to take on specific liabilities associated with the acquisition. As part of the bankruptcy process, True Value has requested to designate Do It Best as the “stalking horse” bidder, which would position it as the primary bidder in the upcoming sale, while also securing funds from Do It Best.
Additionally, True Value’s initial bankruptcy motions included provisions to continue employee compensation and benefits during the proceedings. The company aims to finalize the sale process by the close of the year.