November 07, 2024

True Value files bankruptcy; Do It Best interested in take over

By CNA staff
A bankruptcy filing by True Value stores has made Do It Best, known as Akin in Creston, to acquire True Value.

A bankruptcy filing by True Value stores has made Do It Best, known as Akin in Creston, to acquire True Value. (Nick Pauly)

Do it Best, the nation’s largest member-owned co-op for hardware and lumber products, said Monday it plans to acquire all assets from True Value, a Chicago-based hardware wholesalers that filed for Chapter 11 bankruptcy under private equity ownership.

In Creston, Do It Best is known as Akin. Other Akin locations are in Corning, Clarinda and Atlantic. True Value has a Creston location.

The proposed acquisition, supported unanimously by the Do it Best board of directors, would create a worldwide store network exceeding 8,000 locations in the U.S. and more than 50 countries around the world.

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 operations serving 4,500 independently owned retailers.

“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.”

“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 and CEO. “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.”

Do It Best’s proposed acquisition would allow True Value stores to maintain their independence while gaining access to Do it Best’s programs. 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, Illinois.

“We understand the unique challenges of the retail industry, and if we are successful in our bid for these assets we would be committed to driving True Value stores’ growth alongside our valued Do it Best member-owners,” added Starr. “As the industry’s only full-service co-op distributor, our focus remains on building strong, profitable partnerships that benefit our stores, our vendors, and consumers. This acquisition would represent not just the growth of Do it Best but a brighter future for the entire independent home improvement channel,” Starr concluded.

If Do it Best is the winning bidder, the transaction is expected to close by the end of the year, pending regulatory and court approval. True Value will continue to operate under Chapter 11 protection with Do it Best providing a stalking horse bid.

Under the agreement, Do it Best will purchase many of the True Value assets and business operations. To the extent True Value requires additional financing during the bankruptcy process, Do it Best has committed to provide incremental capital to True Value to help ensure independent True Value retailers’ ability to continue serving customers throughout the process.

Creston News Advertiser contributed to this story.

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