True Value Considers Sale
True Value Co. is considering a sale that could net the home improvement chain about $800 million, according to a recent report by Bloomberg. The company is reportedly working with an investment bank to examine strategic options, including a sale. The process is expected to attract private equity firms. No final decision has been made and True Value may elect not to pursue a sale. True Value, led by CEO John Hartmann, is a cooperative of more than 4,000 stores across more than 58 countries, according to its website. Members of the cooperative, which traces its origins back to 1948, also operate under the names Party Central, Taylor Rental and Grand Rental Station.
Total Retail's Take: True Value is standing out as a successful retailer in a time when those two words aren't used often in the same sentence. After all, a retailer being able to fetch $800 million is an anomaly in today's market. True Value reported revenue of $1.51 billion in 2016, up 1.1 percent from the previous year, and it’s exploring strategic alternatives at a time when other retailers are filing for bankruptcy at a record rate. Alfred Angelo, one of the nation’s largest bridal retailers found in over 1,400 stores, just filed for chapter 7 bankruptcy on Friday. Children's clothing retailer Gymboree filed for bankruptcy protection last month. In May, teen apparel retailer rue21 filed for bankruptcy protection, and footwear chain Payless Inc. announced in April that it's seeking a reorganization after filing for bankruptcy.