The classic wholesale electronics supply chain Real Value, which has 4,500 stores worldwide, announced on Monday that it had filed for Chapter 11 bankruptcy and had accepted an preliminary offer to sell its business to another components and lumber wholesaler, Do It Best.
True Value CEO Chris Kempa stated in a speech that the company made available that it was the best course of action after a thorough analysis of strategic alternatives before closing its doors to add value and best assist our financial partners and other stakeholders in the future.
According to Fox Business, True Value’s Chapter 11 bankruptcy petition filed in Delaware’s bankruptcy court revealed the hardware company’s total liabilities are$ 500 million to$ 1 billion.
True Value stated in its statement on Monday that the company may continue to supply products to the independent financial stores, with its estimated 4,500 independently owned and operated stores not being included in the bankruptcy.
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According to Kempa,” We think that entering the sale process with an agreed present from Do it Best, who has a comparable decades-long record in the home improvement industry and also operates with a focus on supporting people and helping them grow, is the most advantageous next step for True Worth and our partners, clients, and merchant partners.”
According to Fox Business, Do It Best, which is based in Fort Wayne, Indiana, has agreed to be a” pestering animal” bid for the company’s property, which allows True Value to possibly acquire higher offers from different companies. The outlet noted that as part of the tentative agreement, Do It Best has agreed to pay$ 153 million in cash, hire some of True Value’s current employees, and cover roughly$ 45 million in contracts and obligations for True Value.
Do It Best CEO Dan Starr stated during a discussion about the agreement that the acquisition of True Value assets would be a strategic milestone for Do it Best and other home improvement stores all over the world. Do it Best has a proven track record of achieving profitability through the most cost-effective operations in the sector.  , This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come”.
If True Value does not receive a better offer, the sale of the business is anticipated to close with Do It Best by the end of the year, according to The New York Post.