This page will be a repository for updates and links to articles in this ongoing story.
October 17
The next hearing before U.S. Bankruptcy Court Judge Karen B. Owens will take place Nov. 4 in Wilmington, DE.
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October 17
Do it Best Statement Declares It's Ready Now to Support True Value Dealers
Do it Best, responding to what a prelude in its press release described as "gross misrepresentations about product accessibility," issued a statement regarding True Value Company's Chapter 11 and plan to sell to Do it Best.
"Do it Best seeks to assure affected dealers that a stable and reliable solution, especially in the immediate term with drop ship orders, is already operating and ready to support all their product needs through a simple no-fee Do it Best application process that ensures ordering within 24 hours,." the statement said.
Several other distributors, including Orgill and the Hardlines Distribution Alliance, have issued statements in the wake of True Value's plans declaring their readiness to take in True Value dealers.
Here is the statement:
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October 16
True Value Board Member Urges Court to Approve Sale to Do it Best
Megan Menzer, owner of Newton's True Value Hardware and Chairperson of True Value's TV Cooperative Company as well as True Value's TV Holdco, submitted a declaration to federal bankruptcy court supporting motions that would lead to Do it Best acquiring True Value out of Chapter 11 Bankruptcy status.
"I can say with confidence that other store owners and I would be invested and cooperative in a going concern sale process, rather than a liquidation, and many of the risks I have outlined herein would be drastically reduced or eliminated through a sale instead of a liquidation," Menzer wrote.
Menzer warned the bankruptcy court to be wary of a Sept. 27 report by Hilco Consumer-Retail that provides what she regarded as "premised on multiple assumptions that are unrealistic and unreliable." For instance, she said dealers are unlikely to buy True Value's inventory in bulk, even at discount, as Hilco assumes they would.
She also said it would be hard to recover accounts receivables from True Value's 3,000 customers. "Indeed, I am aware that the Company is already having trouble collecting receivables, with many customers beginning to slow-pay invoices."
As for recovering receivables on drop-ship orders processed by True Value, Menzer said True Value "has not been paying drop-ship suppliers in recent months"--potentially inflicting damage on dealers' relations with these vendors.
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October 16
PNC Opposes the Sale
PNC, a major lender to True Value Company, is fighting TV's plans to sell itself to Do it Best. The 119-page filing contains lots of details regarding True Value's process that led to its Chapter 11 filing and naming Do it Best as a "stalking horse" lead buyer.
Here's the filing: https://casedocs.omniagentsolutions.com/cmsvol2/pub_47528/e179b444-54e0-4ec9-97aa-6373e07c31eb_68.pdf
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October 16
Hardlines Distribution Alliance Offers Is Services to True Value Dealers
The Hardlines Distribution Alliance has issued a statement that it's ready to help True Value Company dealers as it takes steps to be sold to Do it Best.
"[U]ncertainty may loom for many independent hardware dealers relying on their supply chain," the alliance wrote. "In response, Hardlines Distribution Alliance stands ready to offer stability and support during this critical time. With a robust network of over 60 independently operated distributors, HDA is uniquely positioned to assist dealers of all sizes, helping them navigate the changing landscape and maintain strong operations"
HDA's press release: https://hdaworks.com/hda-steps-up-to-support-independent-dealers-amid-true-values-chapter-11-filing/
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October 15
Do it Best's Bid for True Value Is a 'Generational Opportunity for Growth,' CEO Says
Do it Best's planned takeover of True Value's 4,500 members and $1.5 billion in buying power delivers a growth opportunity that far outstrips anything the co-op could do organically, President and CEO Dan Starr says.
"To be able to have that kind of scale represents a tremendous growth avenue that, I just don't know how you could achieve it any other way," Starr told Webb Analytics in an interview Oct. 15. "You certainly can't do it organically at any speed that makes sense." He said that he, Do it Best's board, and other co-op members who have contacted him "all look at this as a generational opportunity for growth."
See full story: https://www.webb-analytics.com/post/do-it-best-s-bid-for-true-value-is-a-generational-opportunity-for-growth-ceo-says
Starr also was interviewed Oct. 15 by other media outlets. Here's what he said in those conversations:
Meanwhile, The Hardware Connection's lead story for October contains some reactions from True Value Dealers.
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October 14
Orgill: We've Converted Hundreds of True Value Dealers Already; We Can Serve More
Orgill will "provide support" to True Value Company retailers as Do it Best bids to buy True Value. Orgill notes that 400 True Value retailers converted to Orgill in past 2 years and 65 more conversions are in the works. Orgill also says it shares business with True Value at 800 stores. Then the news release cites Orgill's recent advances and improvements
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October 14
Press Release: Do it Best Makes Bid to Acquire True Value Assets
Do it Best says ts plan to acquire True Value Company "would create a worldwide store network exceeding 8,000 locations in the U.S. and more than 50 countries around the world.
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October 14
Press Release: True Value Announces Sale Agreement with Do it Best
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."