True Value to close Cleveland facility, cut jobs if bankruptcy sale falls through. The latest

Posted by Admin October 25, 2024 Jobs

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True Value plans to close a Cleveland-area distribution center if its planned sale to Do it Best hardware or another competitor falls through.

Here’s the latest on True Value’s bankruptcy.

True Value may close facility in December, plans layoffs

In a WARN notice to the State of Ohio, True Value officials said if the company doesn’t sell through Chapter 11 bankruptcy, they plan to close a facility at 26025 First St. in the Cleveland suburb of Westlake and lay off the 89 employees who work there.

True Value’s website lists the Cleveland facility as one of its many regional distribution centers around the county.

The distribution center would begin to close on Dec. 7, according to the company’s notice, and the workers would be terminated on Dec. 14, or during the following two weeks.

The layoff notice was given as part of Ohio’s Workforce Adjustment Retraining Notification (WARN) Act, which requires employers give at least 60 days notice before any plant closings or mass layoffs.

True Value files for bankruptcy, hopes to sell to Do it Best

On Oct. 14, the 75-year-old company announced plans to sell the business to hardware rival Do it Best Corp, the Cincinnati Enquirer reported. To do that in the “most efficient manner,” True Value began Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware.

In its bankruptcy filings, True Value stated its sales are slumping like others in the home improvement sector, USA TODAY reports.

During bankruptcy proceedings, the company will continue its normal operations serving 4,500 independently owned retailers. Because those True Value stores are independently owned, they will remain open and are not part of bankruptcy proceedings, the company stated in its release.

Do it Best has lead ‘stalking horse’ bid for True Value

Do It Best has offered to pay $153 million in cash to purchase the business, Reuters reported. The sale is expected to be complete by the end of the year, according to True Value’s statement.

The company is the “stalking horse” for True Value, per their agreement, meaning that Do it Best is currently the lead bidder in the sale, but could be outbid.

True Value, Do it Best headquarters and locations in Ohio

True Value, headquartered in Chicago, has 51 locations around Ohio, according to its website, including three in the Akron-Canton area, five in Cincinnati and three in Greater Columbus. To find one near you, use True Value’s store locator.

Do it Best, based out of Fort Wayne, Indiana, has 159 locations across the Buckeye State. To find the closest one to you, use its store locator.

True Value joins Big Lots, Red Lobster, Rite Aid in bankruptcy filings

True Value is the latest restaurant or retail chain with a presence in Ohio to file for bankruptcy. It joins Big Lots, Red Lobster, Rite Aid, and Bed Bath & Beyond.

Hooters, Walgreens, J.C. Penney and Sears and Kmart, and even Disney Stores, are among those that have shuttered stores across the nation since 2020, USA TODAY reports.