The hardlines retail industry saw a giant splash last week in the form of True Value announcing that it had begun Chapter 11 bankruptcy proceedings that will facilitate its sale to Do it Best Corp. — considered the stalking horse bidder. That news came a little more than a week after True Value said it was exploring a sale.
But while Do it Best is positioned to acquire the 75-year-old brand known for providing do-it-yourselfers and contractors with hardline supplies, it won’t necessarily get all of True Value’s some 4,500 member retailers.
PREMIUM: MDM Forecast – 2024 Weakens, 2025 Holds Steady (Oct. 15)
Fellow hardlines distributor Orgill issued a press release on Oct. 14 that detailed how the company is ready to support retailers impacted by True Value’s bankruptcy and potential sale. Noting the uncertainty the situation can cause those retailers, the statement entices current True Value retailers to convert to Orgill members.
Memphis, TN-based Orgill cited how it has converted more than 400 True Value retailers over the past two years, with another 65 in transition, and currently shares business with True Value at more than 800 stores throughout the U.S.
“At Orgill, we have always championed the independent dealer. One thing that Orgill can offer to the thousands of True Value customers during these uncertain times is a pathway to stability in their future business relationships that would enable them to continue serving their communities without fear of any interruption,” Orgill President and CEO Boyden Moore said in the release.
Founded in 1847, Orgill serves more than 13,000 retail hardware stores, home centers, lumber dealers and farm stores throughout the U.S. and Canada and internationally.
PREMIUM: Amazon Business Ups Competitive Ante with VMI Services Launch (Oct. 10)
Moore went on to tout Orgill’s investments in its distribution network, retail programs and field sales team that will enable the company to provide True Value customers with the products and support they need, and “the comfort of knowing that we will be there with them to help grow their business — with no uncertainty or surprises.”
Those investments, Orgill said, include adding its Rome, NY distribution center in 2021; expanding its Hurricane, UT distribution center in 2022 and replacing its Tifton, GA facility earlier in 2024, alongside adding more than $50 million in inventory to help improve existing service levels. Those moves will allow Orgill to boost its network capacity by 50% or over $1.5 billion before adding any additional facilities, the company noted.
“Because we have done more and more business with current and former True Value customers in the recent months, we aren’t starting at ground zero when it comes to conversions or switching systems,” Moore said. “We have the ability and the insights to make this process as efficient as possible.”
Meanwhile, Orgill is already preparing to handle any demand volume that may come from the True Value bankruptcy. The company said it has routed every True Value store — both those Orgill currently services and doesn’t — to facilitate responding to their needs and analyzed potential product and service demands.
Related Posts
-
CEO Chris Kempa emphasized the company's commitment to minimizing the disruption to associates, retailers and…
-
It would join United Hardware as another major acquisition for Do it Best this year.
-
As the speed of technological evolution has outpaced legacy systems' adaptability, this piece breaks down…