True Value files for bankruptcy as Do it Best bids to acquire assets

Oct. 14 (UPI) -- Long-time hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best.

The home improvement industry deal, if approved, would create a network of more than 8,000 stores in the United States and around the world.

"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, which 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," Kempa added. "We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value."

True Value, which is based in Chicago and has been in the home improvement business for more than 70 years, was founded in 1948 and serves more than 4,500 stores worldwide with total retail sales of $10 billion, according to the company.

In 2017, Ace Hardware expressed an interest in buying True Value, amid reports True Value was considering putting itself up for auction with a potential asking price of $800 million. Ace Hardware is also based in Illinois.

True Value currently operates as a wholesaler cooperative that sells its products to hardware sellers and garden centers. Independently owned True Value stores are not part of the bankruptcy.

If Do it Best is the winning bidder for True Value's assets, the transaction could be on track to close by the end of the year, pending regulatory and court approval.

"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," Starr added. "This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come."