Chicago-based hardware wholesaler True Value has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware, with plans to sell most of its business operations to a rival in the sector, Do it Best.
True Value said the bankruptcy filing came after a significant cash crunch, as the housing market stalled and consumers became more hesitant to spend cash.
It will include owned property, all owned tangible property, accounts, machinery, equipment, movable property, and vehicles.
Chapter 11 bankruptcy allows businesses to maintain regular operations while creating a plan to repay creditors.
In September, discount retail chain Big Lots filed for bankruptcy protection.
True Value’s Chief Executive Officer Chris Kempa said “entering the process with an agreed offer from Do it Best” was flagged as the “most beneficial next step for True Value.” “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,” Kempa said.
“This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come,” Starr said.
No comments:
Post a Comment