Trending
By Luca Casiraghi | Bloomberg
True Value Co. filed for bankruptcy in Delaware on Monday as it seeks to sell its business to rival Do it Best Corp.
The Chicago-based home-improvement company will continue to operate under Chapter 11 protection with Do it Best providing a so-called stalking horse bid, meaning that it’s subject to better offers, should any materialize, according to a company statement. The bidder offered to pay $153 million in cash, according to the bankruptcy filing.
“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,” True Value’s Chief Executive Officer Chris Kempa said.
The company “faced significant liquidity challenges” and hired Houlihan Lokey Inc. in May as financial advisor to review options, it said in the filing.
True Value is the latest firm seeking Chapter 11 protection as inflation impacts household spending for discretionary goods in the US. Home, clothing and hobby store chains dominate the list of distressed retailers, according to Moody’s Ratings.
True Value is seeking to use its cash collateral to support the business through the sale process, and it has received a commitment from Do it Best to provide additional capital. The company serves a network of 4,500 independently-owned and operated retailers.
It has estimated liabilities between $500 million and $1 billion, and assets between $100 million and $500 million, according to the Chapter 11 filing. Private equity firm Acon Investments purchased a stake in True Value in 2018.
The US bankruptcy case is True Value Company LLC, 24-12337, US Bankruptcy Court District of Delaware (Wilmington).
Originally Published:
By Luca Casiraghi | Bloomberg
True Value Co. filed for bankruptcy in Delaware on Monday as it seeks to sell its business to rival Do it Best Corp.
The Chicago-based home-improvement company will continue to operate under Chapter 11 protection with Do it Best providing a so-called stalking horse bid, meaning that it’s subject to better offers, should any materialize, according to a company statement. The bidder offered to pay $153 million in cash, according to the bankruptcy filing.
“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,” True Value’s Chief Executive Officer Chris Kempa said.
The company “faced significant liquidity challenges” and hired Houlihan Lokey Inc. in May as financial advisor to review options, it said in the filing.
True Value is the latest firm seeking Chapter 11 protection as inflation impacts household spending for discretionary goods in the US. Home, clothing and hobby store chains dominate the list of distressed retailers, according to Moody’s Ratings.
True Value is seeking to use its cash collateral to support the business through the sale process, and it has received a commitment from Do it Best to provide additional capital. The company serves a network of 4,500 independently-owned and operated retailers.
It has estimated liabilities between $500 million and $1 billion, and assets between $100 million and $500 million, according to the Chapter 11 filing. Private equity firm Acon Investments purchased a stake in True Value in 2018.
The US bankruptcy case is True Value Company LLC, 24-12337, US Bankruptcy Court District of Delaware (Wilmington).
Originally Published:
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The information provided by California News Bird is for general informational purposes only. While we strive to ensure that the content we publish is accurate, current, and reliable, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or availability of the information, products, or services contained on our website.
