Hardline wholesaler True Value has entered voluntary Chapter 11 proceedings to complete the sale of its business operations to Do it Best Corp.
The 75-year-old brand will continue its normal operations serving an international network of 4500 independently owned retailers during the process.
The company said the sale is the next step in a series of actions it has taken this year to better position the business for the long term. The agreement with Do it Best provides significant cash consideration and meaningful assumption of liabilities related to the ongoing business, it added.
True Value is seeking designation of Do it Best as the “stalking horse” bidder and to initiate a competitive bidding process under Section 363 of the Bankruptcy Code. The company plans to use its cash collateral to fund operations through the sale.
Do it Best has also committed to providing incremental capital in case True Value requires additional financing during the process.
“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 CEO.
The company expects the sale to conclude by the end of this year. True Value stores are independently owned and are not a part of the Chapter 11 proceedings, except for one company-owned store in Palatine, Illinois.
Headquartered in Chicago, True Value offers products and expert guidance for DIY and home maintenance projects.
- Further reading: ‘The best path forward’: LL Flooring enters Chapter 11
