Shoppers at True Value stores in Shawano and Oconto Falls will notice few, if any, changes at the stores due to the company’s recent bankruptcy filing.
Chicago-based True Value filed for Chapter 11 bankruptcy protection and said in a press release all of its 4,500 stores, including Qualheim’s True Value in Shawano and United True Value in Oconto Falls, will remain open during the bankruptcy process. All stores but one are independently owned.
“We, United True Value, are independently owned and operated, just as all True Value stores are,” the Oconto Falls store posted on Facebook. “We will continue to proudly serve our community and surrounding areas, and this should have very little impact on us as a store.
“That being said, please have patience and understanding with us as we navigate through this time.”
The 75-year-old hardware company initiated the proceedings to enter into an agreement with Do It Best, which has offered to pay $153 million in cash to purchase the business.
Qualheim’s True Value posted a statement to its Facebook page even before True Value announced its plans.
“Before too much speculation starts, we want you to know that we are not going anywhere,” according to the post. “We are a local, privately owned business and are in good financial health. The Chapter 11 filing and impending sale of True Value Company will have no bearing on us at this point. We have many other suppliers and options available to us and we will determine what the best path is going forward to best serve our community.”
Under the agreement with Do It Best, the home improvement rival will become a “stalking horse” bidder, according to True Value. That means that while the Fort Wayne, Indiana company is technically the lead bidder, True Value remains open to better offers.
True Value sells a variety of home improvement goods like tools, lumber and plumbing Company officials said True Value has succumbed to slumping sales. The company, has between $500 million and $1 billion in total liabilities.
“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,” True Value CEO Chris Kempa said in a statement. “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.
Do it Best is a member-owned wholesaler of lumber and hardware products to independent stores.
The transaction with Do it Best is expected to close by the end of the year.
kpasson@newmedia-wi.com
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