True Value
The True Value Company is an American wholesaler and hardware store brand. The corporate headquarters are located in Chicago. Historically, True Value was a cooperative owned by retailers; however, in 2018, it was purchased by ACON Investments. In October 2024, True Value filed for bankruptcy and competitor Do It Best agreed to purchase the company. The purchase was completed in November 2024. The independent retailers True Value supplied, branded as "True Value", are not part of the bankruptcy and will continue operating.
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| True Value | |
| Company type | Subsidiary |
| Industry | Hardware stores |
| Founded | Chicago, Illinois, U.S. (1948, as Cotter & Company) |
| Founder | John Cotter |
| Headquarters | , |
Number of locations | 4,500+ (60 countries)[1] |
Key people | Dan Starr (CEO)[2] |
| Products |
|
| Revenue |  US$1.488 billion (2017)[3] |
 US$ 40.16 million (2017) | |
| US$ 24.75 million (2017) | |
| Total assets | US$ 912.88 million (2017) |
| Total equity | US$ 160.4 million (2017) |
| Owner | Do It Best |
Number of employees | 2,500 (2019)[4] |
| Website | truevalue.com |
The True Value Company is an American wholesaler and hardware store brand.[5] The corporate headquarters are located in Chicago.[6]
Historically, True Value was a cooperative owned by retailers;[7] however, in 2018, it was purchased by ACON Investments.[8] In October 2024, True Value filed for bankruptcy and competitor Do It Best agreed to purchase the company.[5] The purchase was completed in November 2024.[9] The independent retailers True Value supplied, branded as "True Value", are not part of the bankruptcy and will continue operating.[5]
History
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True Value Company was originally composed of four hardware cooperatives and a hardware wholesaler: American Hardware & Supply (ServiStar), Coast to Coast Corporation, Cotter & Company (True Value), and Hibbard Spencer Bartlett & Company.
Cotter & Company was established in 1948 by John Cotter with 12 original member stores. The cooperative grew in membership and, in 1962, Cotter & Company purchased the assets of Hibbard Spencer Bartlett & Company (formerly led by Adolphus C. Bartlett) for US$2.5 million, acquiring the True Value trademark for $2500 as part of the acquisition. ServiStar Hardware (formerly American Hardware Supply) had previously purchased Coast to Coast Hardware and had renamed itself to Servistar & Coast to Coast Hardware. Their hardware stores were operating under either ServiStar or Coast to Coast retail identities. In 1997, they merged with Cotter & Company to form TruServ Corporation.[10]
During a 1999 audit, accounting irregularities of about $100 million were discovered originating from pre-merger Cotter & Company, leading to a $131 million loss that year causing the value of TruServ stock to plummet. During this period (1999–2001), a number of hardware stores chose to leave TruServ to join competing hardware cooperatives including Ace Hardware and Do It Best. TruServ Corporation brought in new management, eliminated the ServiStar and Coast to Coast brand names, and streamlined operations by closing many of the regional distribution centers. In 2006, TruServ Corporation was renamed True Value Company.
In July 2017, True Value was offered for sale, and competitor Ace Hardware expressed interest in purchasing it.[11] Eventually, in 2018, international private equity investment firm, ACON, purchased True Value.[8]
In 2019, True Value announced a new 1.4 million square foot facility, set to open that fall in Hanover Township, Pennsylvania, intended to service approximately 1,000 stores. Along with the new distribution center True Value also adopted the "hub-and-spoke" model.[12]
On November 1, 2022, True Value acquired the Agway Trademark from Agway Farm & Home Supply.[13]
On October 14, 2024, True Value filed for Chapter 11 bankruptcy protection as it continued to face liquidity challenges caused by inflation and rising interest rates. The company agreed to sell itself to competitor Do It Best for $153 million.[14] The purchase was completed in November 2024.
House brands
[edit]True Value's house brands, including Green Thumb (gardening), Master Electrician (electrical supplies), Master Plumber (plumbing supplies), HomePointe (cleaning supplies and bath fixtures), Master Painter (painting supplies), Tru Guard (electrical safety goods and lock sets), Pet Expert (collars and pet kennels), Holiday Wonderland (holiday decor) and Master Mechanic (tools), are manufactured by many different suppliers to company specifications.
Early tool offerings were branded Tru-Test which eventually was used exclusively for paint until that name was supplanted by EasyCare. EasyCare (and previously, Tru Test) paints are manufactured at True Value's General Paint & Manufacturing (GPM) factory in Cary, Illinois. This facility manufactures latex paints, oil-based paints, stains and aerosols exceeding 7,300,000 gallons annually for multiple retailers in addition to True Value.[15]
From the late 1960s until the late 1990s, True Value also sold a line of lawnmowers, tillers and similar power equipment under the Lawn Chief brand.
Notes
[edit]- ^ "True Value Company > Home". Truevaluecompany.com. Retrieved April 9, 2020.
- ^ staff. "Meet The Team – True Value Company". truevaluecompany.com. Retrieved December 2, 2024.
- ^ "2017 Annual Financial Report" (PDF). Truevaluecompany.com. March 2, 2018.
- ^ "True Value". Forbes.
- ^ a b c Valinsky, Jordan (October 14, 2024). "True Value declares bankruptcy and sells itself to a hardware rival". CNN. Retrieved October 17, 2024.
- ^ Shipe, Caitlynn (October 14, 2024). "Do it Best makes bid to obtain Chicago-based True Value". FOX 55 Fort Wayne. Retrieved October 17, 2024.
- ^ Unglesbee, Ben. "True Value announces buyout deal with private equity firm". Retail Dive. Retrieved October 22, 2019.
- ^ a b Dorbian, Iris (March 16, 2018). "ACON Investments to invest in hardware retailer True Value". Pehub.com. Retrieved August 11, 2019.
- ^ Connection, The Hardware (November 22, 2024). "Do it Best Finalizes True Value Acquisition, Creating Largest Network of Independent Home Improvement Stores". The Hardware Connection. Retrieved December 2, 2024.
- ^ staff (December 11, 1996). "TRUE VALUE PARENT, SERVISTAR TO MERGE". Chicago Tribune. Retrieved March 14, 2024.
- ^ DuVall, Eric (July 13, 2017). "Ace Hardware interested in buying competitor True Value - UPI.com". UPI. Retrieved October 17, 2024.
- ^ Smith, Jennifer (July 16, 2019). "True Value Retools Hardware Supply Chain". Wall Street Journal. Retrieved August 11, 2019.
- ^ Chen, I Chun (November 1, 2022). "True Value buys Agway brand to expand in farm products". Chicago Business Journal. Retrieved October 17, 2024.
- ^ Casiraghi, Luca (October 14, 2024). "Wholesaler True Value in Bankruptcy to Sell Itself to Rival". Bloomberg. Retrieved October 14, 2024.
- ^ "GPM – Expertly Crafted. Within Reach". Privatelabelpaint.net. Retrieved August 11, 2019.
