True Value Company, L.L.C., a Chicago-based hardware wholesaler founded approximately 75 years ago, filed for Chapter 11 protection on October 14, 2024 in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-12337) before Judge Karen B. Owens. The company supplied approximately 75,000 products from over 2,000 suppliers to roughly 4,500 independently owned retail storefronts through 12 distribution centers and a paint manufacturing plant, employing about 1,950 workers. The filing followed post-pandemic demand normalization that pushed sales below pre-pandemic levels, compounded by prepetition lenders tightening borrowing base availability, exercising cash dominion with daily cash sweeping, and requiring consent for disbursements — materially reducing working capital. The debtors used cash collateral under court-approved budgets (PNC Bank as administrative agent, approximately $238.2 million funded debt) rather than obtaining new DIP financing. Substantially all assets were sold to stalking horse bidder Do it Best Corp. for $153 million cash plus assumed liabilities (including capped assumed payables up to $45 million), with the buyer agreeing to provide up to an additional $10 million to ensure prepetition lenders received $163 million. The sale order was entered November 13, 2024. The Third Amended Joint Chapter 11 Plan was confirmed April 17, 2025 and became effective April 25, 2025, establishing a litigation trust with Michael I. Goldberg as plan administrator. Priority and other secured claims are paid in full; general unsecured creditors receive pro rata litigation trust interests; subordinated claims and existing equity interests were canceled with no distribution.
