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True Value

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(Redirected from Cotter & Company)
For the statistical concept, see True value.

True Value Company, L.L.C.
True Value
Company typePrivate
IndustryHardware stores
FoundedChicago, Illinois, U.S. (1948; 76 years ago (1948), as Cotter & Company)
FounderJohn Cotter
Headquarters
Chicago, Illinois
,
U.S.
Number of locations
4,500+ (60 countries)[1]
Key people
Chris Kempa (CEO)[2]
Products
RevenueDecrease US$1.488 billion (2017)[3]
Increase US$ 40.16 million (2017)
Increase US$ 24.75 million (2017)
Total assetsDecrease US$ 912.88 million (2017)
Total equityDecrease US$ 160.4 million (2017)
OwnerACON Investments
Number of employees
2,500 (2019)[4]
Websitetruevalue.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] but in 2018 it was purchased by ACON Investments.[8]

In October 2024, True Value filed for bankruptcy. Competitor Do it Best agreed to purchase the company.[5] The independent retailers it supplies branded as "True Value" are not part of the bankruptcy and will continue operating.[5]

History

[edit]

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.[9]

A worker enters a True Value lumberyard in New Dorp, Staten Island, New York City, New York. The lumberyard shut down in 2009.

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 $2.5 million, acquiring the True Value trademark for $2500 as part of the acquisition.[9] ServiStar Hardware (formerly American Hardware Supply) had previously purchased Coast to Coast Hardware[9] 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.[9] 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] In 2018 an 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, intended to service approximately 1,000 stores located in Hanover Township, Pennsylvania. 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 plans to sell itself to competitor Do It Best for $153 million.[14]

General Paint & Manufacturing

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True Value owns General Paint & Manufacturing (GPM), a paint manufacturing plant, and supplies paint to other companies. The facility manufactures latex paints, oil based paints, stains and aerosols exceeding 7,300,000 gallons annually. GPM also manufactures a complete line of jansan/cleaning chemicals.[15]

House brands

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True Value's house brands, including Green Thumb, Master Electrician, Master Plumber, Lawn Chief and Master Mechanic, are manufactured by many different suppliers to company specifications.

Notes

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  1. ^ "True Value Company > Home". Truevaluecompany.com. Retrieved April 9, 2020.
  2. ^ "True Value Company Announces CEO Transition" (Press release).
  3. ^ "2017 Annual Financial Report" (PDF). Truevaluecompany.com. March 2, 2018.
  4. ^ "True Value". Forbes.
  5. ^ a b c Valinsky, Jordan (October 14, 2024). "True Value declares bankruptcy and sells itself to a hardware rival". CNN. Retrieved October 17, 2024.
  6. ^ Shipe, Caitlynn (October 14, 2024). "Do it Best makes bid to obtain Chicago-based True Value". FOX 55 Fort Wayne. Retrieved October 17, 2024.
  7. ^ Unglesbee, Ben. "True Value announces buyout deal with private equity firm". Retail Dive. Retrieved October 22, 2019.
  8. ^ a b Dorbian, Iris (March 16, 2018). "ACON Investments to invest in hardware retailer True Value". Pehub.com. Retrieved August 11, 2019.
  9. ^ a b c d "True Value Company". ReferenceForBusiness.com. Retrieved August 11, 2019.
  10. ^ staff (December 11, 1996). "TRUE VALUE PARENT, SERVISTAR TO MERGE". Chicago Tribune. Retrieved March 14, 2024.
  11. ^ DuVall, Eric (July 13, 2017). "Ace Hardware interested in buying competitor True Value - UPI.com". UPI. Retrieved October 17, 2024.
  12. ^ Smith, Jennifer (July 16, 2019). "True Value Retools Hardware Supply Chain". Wall Street Journal. Retrieved August 11, 2019.
  13. ^ Chen, I Chun (November 1, 2022). "True Value buys Agway brand to expand in farm products". Chicago Business Journal. Retrieved October 17, 2024.
  14. ^ Casiraghi, Luca (October 14, 2024). "Wholesaler True Value in Bankruptcy to Sell Itself to Rival". Bloomberg. Retrieved October 14, 2024.
  15. ^ "GPM – Expertly Crafted. Within Reach". Privatelabelpaint.net. Retrieved August 11, 2019.
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