Business As Usual: True Value Philippines Unaffected by Bankruptcy Filing of US Company
True Value, a 75-year-old American hardware store chain, has filed for Chapter 11 bankruptcy and will sell off all of its business operations to rival company Do It Best. In an announcement made last Monday (October 14), True Value Company LLC cited liquidity issues exacerbated by rising inflation and higher interest rates for the move.
In court filings, True Value said it also faces a significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware, as reported by CNN.
As part of its restructuring plan, True Value is reportedly preparing to sell itself to its competitor Do It Best for a reported amount of $153 million.
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However, the company said its stores, which number around 4,500 worldwide, will continue day-to-day operations as they are not part of the bankruptcy proceedings. This includes True Value stores in the Philippines, which are independently owned and operated by Robinsons True Serve Hardware Philippines Inc.
In a statement sent to Esquire Philippines, RTSHI said it is still “business as usual” for all True Value stores in the Philippines. “All stores remain open and ready to serve our shoppers with the same commitment to quality that has made True Value Philippines a trusted name in home improvement.”
“The sale agreement between the True Value Company and Do it Best is a welcome development with the potential to unlock new synergies,” said Robinsons Retail DIY Segment Group Manager Theodore Sogono. “As a member of Do It Best through our Handyman banner since 2001, this transition creates growth opportunities that will allow us to continue delivering the quality and value that our shoppers expect while also benefitting from an expanded network of suppliers and a broader range of products.”
True Value has had a long history, having been a prominent player in the hardware and home improvement industry since its founding in 1948?.
"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."
Headquartered in Chicago, Illinois in the U.S., True Value started as a hardware cooperative and became a hardware wholesaler in 2018. All stores that do business with them, including True Value Philippines, are licensed to use the True Value name and operates independently as franchisees in over 60 countries.
Locally, True Value has a strong presence in the retail market. The Robinsons retail group acquired the True Value Philippines franchise in 2006 and currently has around 28 stores in Metro Manila and key provinces.
"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," said Dan Starr, Do it Best President and CEO said in the press release. "Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
