Hardware Retailing The Industry's Source for Insights and Information
As the True Value bankruptcy and planned sale to Do it Best continues to move forward, with a scheduled closing date of Nov. 22, several industry wholesalers have reached out publicly to offer support to True Value retailers and court their business.
In an open letter posted on the company’s website, Orgill president and CEO Boyden Moore extended his concern to True Value retailers for the challenges and anxiety they have faced the past few weeks. He then went on to ask retailers to consider Orgill, and shared the ways Orgill has found success over the past 177 years.
“We are well prepared to help you through these challenges and provide a dependable path forward and drive your success,” Moore says in the letter. “This extraordinary growth is proof that we are successfully executing our mission. When you do business with Orgill, you can expect honesty, transparency, integrity, strength, stability and commitment.”
According to the letter, Orgill has converted over 400 True Value stores to Orgill in the past two years and is serving more than 800 True Value stores who haven’t made the decision to convert to Orgill as their primary distributor. Orgill has over 75,000 SKUs in its warehouses and relationships with the industry’s top vendors to supply True Value retailers with the products they need, Moore says in the letter.
“We have already built the distribution infrastructure to take care of your needs. We have fast tracked the steps to get you up and running quickly with us,” Moore says. “There is no investment in our business that is required of you. If we make a mistake running our business, you’ll never be required to pay for it.”
Moore goes on to invite any True Value retailers to the Orgill Dealer Market in New Orleans this February to meet the Orgill team and talk to current Orgill retailers.
“We believe that we can be your best distribution partner and our sales representatives are reaching out to you to see if maybe the time is right for us to discuss a partnership with Orgill and how well we are prepared to help drive your success now and over the long term,” Moore says.
Ace president and CEO John Venhuizen also shared his insights in a statement published to Ace retailers. Venhuizen says that over 800 True Value retailers have expressed interest in doing business with either Ace or Emery Jensen Distributors (EJD).
“We have great interest in providing a safe haven for a few hundred of the family operated True Value stores, just as we have for decades. Now, it’s quite doubtful that we would affiliate a cohort this large—and perhaps some of them too will lose interest or find other options,” Venhuizen says. “But I want you to know that we are doing that which it takes to provide a secure refuge to the limited number of True Value retailers who are eligible to become Ace retailers or EJD customers.”
Venhuizen mentions that Ace Hardware is expanding its distribution space, including 1.5 million square feet at the distribution center in Kansas City, and increasing inventory levels across the network where it anticipates new volume. Venhuizen says the company’s most important work right now is to ensure that it “threads the needle between a speedy, elegant and excellent on-ramp for a large number of new stores converting to Ace or EJD and protection for existing Ace stores to ensure that service from Ace and fill rates from the RSCs remain best in class.”
“I will ask for some grace in advance as there is certain to be some degree of change or logistical alterations, but our aim with the additional inventory is even better service, not worse,” Venhuizen says. “From my vantage point the big picture here is essentially this: For 100 years Ace has been a place that shines brightest in the darkest hour. For hundreds of nervous store owners, this moment will be no different. My promise to you, our Ace owners, is this: we will work mightily to be operationally aggressive, strategically consistent and judiciously prudent. In other words, we plan to be aggressive, but selective.”
Jonathan Mize, chairman and CEO of Blish-Mize Co. based in Atchison, Kansas, added his thoughts as well, reinforcing that Blish-Mize is dedicated to serving independent hardware retailers, regardless of their affiliation, and have proudly supported True Value retailers for many years.
“Following True Value Company’s recent bankruptcy announcement, we have proactively reached out to impacted retailers within our service area, assuring them that Blish-Mize is a reliable source for exceptional products, innovative solutions and personalized service that drive customer success in partnership with our valued vendors, and have been successful with many,” Mize says. “With over 150 years of experience and five generations of family ownership, we seamlessly blend tradition with progress to ensure unmatched service and support for every customer we serve. Blish-Mize Co. is here, and ready to ‘Deliver More.’”
Cure Objection Deadline Passes
Today was the final day for creditors to submit cure objections, and at time of publishing, 62 businesses had filed objections, challenging the cure amounts listed in the Notice of Proposed Assumption and Assignment of Certain Executory Contracts. These 62 organizations claim the cure amounts are incorrect by over $74.8 million dollars.
As of press time, the list of claims has now reached 1,146, totaling $131,695,121, with $119,427,15 in unsecured debt and $699,210 in priority claims.
Follow along with all of the True Value bankruptcy and sale news:
- Vendors Seek Return of Goods or Payment From True Value, Courts List Exec Bonuses and Payouts
- True Value Temporarily Suspends Drop Ship Program
- True Value and Lenders Reach Milestone Agreement Moving Sale to Do it Best Forward
- True Value RDCs Prepare for Potential Shutdown
- Judge Shares Concerns With Direction of True Value Bankruptcy Filing
- Bankruptcy Judge Allows True Value to Use Cash Collateral While Lenders Push Back
- Industry Reacts to True Value Bankruptcy and Potential Sale to Do it Best
- NHPA Offers Tools, Reassurances to Retailers Potentially Impacted by True Value Bankruptcy
- Do it Best CEO Adds New Insights to True Value Purchase Plans
- True Value Files for Chapter 11 Bankruptcy, Do it Best Bids to Acquire Assets
