Initiates Chapter 11 Proceedings to Complete
Value-Maximizing Transaction
Continuing to Serve Independently Owned True
Value Retail Stores and Other Customers as Usual
CHICAGO, Oct. 14,
2024 /PRNewswire/ -- True Value Company, L.L.C.
("True Value" or the "Company"), one of the world's leading
hardlines wholesalers, today announced that it has entered into an
agreement to sell substantially all of the Company's business
operations to home improvement industry peer Do it Best Corp.
To complete the sale in the most efficient manner, True Value
and certain of its affiliates initiated voluntary Chapter 11
proceedings in the U.S. Bankruptcy Court for the District of
Delaware. True Value will continue
its day-to-day operations serving 4,500 independently owned
retailers that rely on True Value for the right products, trusted
expertise, and its 75-year-old iconic brand.
"After a thorough evaluation of strategic alternatives, we
determined that the sale of our business was the path forward to
maximize value and best serve our retail partners and other
stakeholders into the future," said Chris
Kempa, True Value's Chief Executive Officer. "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. We thank these valued
stakeholders for their continued loyalty as we work to secure a
stronger future for True Value."
True Value's sale process is the next step in a series of
actions that the Company has taken in 2024 to better position the
business and its iconic brand for the long term, including
modernizing its legacy operations, driving greater efficiencies,
and investing in additional marketing campaigns.
"A successful acquisition of True Value assets would represent a
strategic milestone for Do it Best and home improvement retailers
around the world," said Dan Starr,
Do it Best President & Chief Executive Officer. "Do it Best has
a proven track record of driving profitability through the most
efficient operations in the industry. This acquisition, if
consummated, would provide True Value and independent hardware
stores the strongest opportunities for growth for years to
come."
The agreement with Do it Best, which was reached following a
robust marketing process, provides significant cash consideration
and meaningful assumption of liabilities related to the ongoing
business. The Company is requesting designation of Do it Best as
the "stalking horse," or lead, bidder and to initiate a competitive
bidding process under Section 363 of the Bankruptcy Code designed
to achieve the highest or otherwise best value for the Company. To
support the day-to-day business through the sale, the Company is
seeking to use its cash collateral to fund operations. To the
extent True Value requires additional financing during the process,
the Company has received a commitment from Do it Best to provide
incremental capital.
The Company is also filing with the Court a series of customary
motions seeking to uphold its commitments to its stakeholders
during the process. These "first day" motions include requests to
continue to pay wages and provide benefits to associates in the
ordinary course and offer essential customer programs. The Company
anticipates paying vendors in the ordinary course for authorized
goods received and services rendered after the filing.
The Company is targeting completion of the sale process by year
end.
True Value stores are independently owned and are not a part of
the Chapter 11 proceedings, with the exception of one Company-owned
store in Palatine, IL.
Court filings and other information regarding the proceedings
can be found at https://omniagentsolutions.com/TrueValue. Vendors
with questions can call (866) 771-0561 (U.S. & Canada) or +1 (818) 356-8633 (international)
or email TrueValueInquiries@OmniAgnt.com.
Skadden, Arps, Slate, Meagher & Flom LLP, Glenn Agre Bergman & Fuentes LLP, and
Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, M3 Partners, LP is serving as
financial advisor, and Houlihan
Lokey is serving as investment banker to the Company.
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 proudly carries a legacy of
empowering independent retailers within their local communities,
becoming a symbol of strength and resilience that customers
recognize and trust.
True Value Company has an international network of 4,500
independently owned and operated stores that are committed to
providing customers exceptional products and expert guidance for
their DIY and home maintenance projects.
While retaining an independent spirit and community focus,
operations have vastly expanded, providing local stores the freedom
to stock essential products and offer services for business growth,
all while maintaining the trusted legacy brand.
True Value is not just a chain of stores, True Value is your
trusted partner for all things hardware.
Media Contacts:
Nadia Hill
Communications Manager | True Value Company
nadia.hill@truevalue.com
Sherri L. Toub / Wendi Kopsick
Kekst CNC
TrueValueMedia@KekstCNC.com
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SOURCE True Value Company