True Value Company said it entered agreed to sell substantially all of the company's business operations to Fort Wayne, Indiana-based Do it Best Corp.
The move involves filing for Chapter 11 bankruptcy protection through the U.S. Bankruptcy Court for the District of Delaware. True Value will continue its day-to-day operations serving 4,500 retailers retailers. 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.
"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. "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."
Chicago-based True Value is targeting completion of the sale process by year end.