True Value Company enters into bankruptcy, begins Chapter 11 proceedings

The former True Value store at 1215 E. Rand Road in Arlington Heights, which closed in 2011. True Value stores are independent and are not part of the Chapter 11 proceedings the company recently filed , except for the company store. in the Palatine country.
Daily Herald File, 2011

Chicago-based True Value Company, LLC, a leading retailer of furniture and durable goods, has entered into an agreement to sell substantially all of the company’s operations to home improvement industry peer Do it Best Corp.

To complete the sale, True Value and some of its partners began voluntary proceedings in the US Bankruptcy Court for the District of Delaware, according to a press release.

True Value will continue day-to-day operations serving 4,500 independent retailers worldwide who offer the products and experience of a 75-year-old brand.

True Value stores are independent and not part of the Chapter 11 cases, except for the company’s store in Palatine. A Palatine-based employee declined to comment on the sale announcement and the company’s bankruptcy at this time.

“After a thorough evaluation of strategic alternatives, we decided that the sale of our business was the first way to add value and help our retail partners and other involved in the future,” said Chris Kempa, chief executive officer of True Value. “We believe that entering into the process through an agreed application by Do it Best, who has a similar history of decades in the area of ​​home development and works with the aim of supporting members and helping them to grow, is the next best step for True Quality and our partners, customers, and vendors. We thank these key stakeholders for their continued loyalty as we work to maintain a strong future of True Value.”

The sale of True Value is the next step in a series of actions the company has taken this year to better position the business and its long-term brand, including revamping its legacy operations. , to drive greater success, and invest in other advertising campaigns, according to the release.

“The successful sale of True Value properties would represent a significant milestone for Do it Best retailers and home improvement retailers worldwide,” said Dan Starr, Do it Best president and chief executive officer. in the title. “Do it Best has a proven track record of driving profitability through industry-leading performance. This acquisition, if completed, could provide True Value and independent resources that hold strong growth opportunities for for years to come.”

A partnership with Do it Best provides valuable financial advice and consideration for business-related liabilities. True Value is requesting the designation of Do it Best as a “sled horse,” or lead, buyer and initiate a competitive acquisition process under Section 363 of the Bankruptcy Code designed to achieve the highest value or is the highest for the company.

True Value will use its cash collateral to fund day-to-day operations. If additional funding is needed, the company has received a commitment from Do it Best to provide incremental funding.

True Value also presents a series of custom and court appeals that seek to uphold its commitment to its stakeholders during sales. That would allow the company to continue paying dividends and providing benefits to partners and offering valuable customer programs. The company expects to pay vendors for approved goods received and services provided after the filing, according to the release.

The sale is expected to be completed by the end of the year.