Green Light for Do it Best Purchase of True Value
As the bankruptcy and sale process advances, store owners weigh options for future stability and support.
“We’re at a crossroads,” said Lori Colgan, owner of Brown’s True Value Hardware in Atwood, Kan.
Colgan bought her store when she was 25 and single. She got married and raised her children as “True Value kids.” She fondly recalls meeting Terry Bradshaw at a True Value Reunion and still has the football he signed for her. Like many retailers, Colgan had heard that True Value was looking for a buyer, but she was surprised by the bankruptcy filing.
“When I heard the news, it was an emotional response at first,” Colgan said. “It’s not just about our store name. We could be Brown’s Hardware. If True Value stays around as a brand through Do it Best, we’ll go with Do it Best. If that’s off the table, we’re looking at other options, and other distributors have stopped in.”
Other retailers weren’t as surprised as Colgan. Franklin Cloninger, general manager of Triangle True Value Hardware and Rental in Greenwood, S.C., said recent supply line issues following Hurricane Helene raised red flags about the True Value.
“During COVID, we diversified our vendors,” Cloninger said. “We have a primary, secondary and third. We’re excited to partner with Do it Best to get a little bit more energy, which is key for us.”
Cloninger said that several customers and employees have had questions about the True Value bankruptcy. “We did some video releases and press releases to customers explaining that we’re shifting from one business model to another as far as a supplier,” Cloninger said. “We are expecting a significant out-of-pocket cost and that part will be a challenge, but we’re optimistic that Do it Best will have a smart plan and way to execute going forward.”
Like Triangle True Value, many other True Value retailers have had to explain to customers that their store isn’t going out of business. The days after the news broke about True Value’s bankruptcy, Solenberger’s True Value in Winchester, Va., posted a message by owner John Solenberger Jr. on its social media that briefly explained the bankruptcy proceedings and offered this assurance: “Although the bankruptcy and sale of our 75-year-old distributor and co-op is a significant moment, it will not affect our day-to-day operations or the way we serve our customers. We are committed to continuing our great tradition of service for many generations to come.”
Similarly, Mike Outlaw, owner of Harpeth True Value in Franklin, Tenn., was interviewed by the local newspaper and emphasized his store’s commitment to stay open and serve his community just south of Nashville.
Judge Smoothes Process for Do it Best Acquisition
True Value Company has reached a crucial agreement with its lenders to prevent liquidation and move forward with an expedited Chapter 11 bankruptcy process. This arrangement, approved by U.S. Bankruptcy Judge Karen Owens on October 31, enables True Value to proceed with its reorganization while advancing the anticipated sale to Do it Best. Judge Owens, expressing her relief over the agreement, stated, “I’ll sleep much better tonight, and I know you will, too.”
The agreement also lifts a prior condition for True Value to uphold a minimum inventory level, reflecting lender confidence that the company will maintain adequate stock during the sale process. Earlier concerns from PNC Bank, which had objected to True Value’s use of cash collateral, were resolved through this agreement, allowing the company to continue operations uninterrupted. Bradford Sandler, representing the unsecured creditors, praised the settlement, saying it was a “terrific result” that enables True Value to move toward a targeted sale completion on November 22.
Designating Do it Best as the stalking-horse bidder, the agreement sets Do it Best’s bid at $153 million with an additional $10 million if needed to satisfy the $163 million required by True Value’s pre-petition lenders. The proposed timeline expedites the process with an auction set for November 11, a sale hearing on November 12, and an expected closing on November 22, weeks ahead of the original December 6 schedule. This swift resolution aims to preserve True Value’s operations, protect jobs, and maintain its role in the hardware industry.
