This comes after US hardware chain giant True Value Co. began Chapter 11 bankruptcy proceedings in the United States. This was first reported locally by Esquire Philippines.
True Value Philippines is independently owned and operated by Robinsons True Serve Hardware Philippines Inc., Robinsons Retail said.
“True Value Philippines is part of a global network of 4,500 independently owned True Value stores, which are not part of the recent Chapter 11 filing of True Value Co. in the United States,” it added.
True Value, founded in 1948 and based in Chicago, recently agreed to sell most of its business to Do it Best Corp. after filing for Chapter 11 bankruptcy on Oct. 14, 2024. This allows licensed stores, like those in the Philippines, to continue using the True Value name.
Management’s view
“The sale agreement between True Value Co. and Do it Best Corp. is a welcome development with the potential to unlock new synergies,” Robinsons Retail DIY segment group general manager Theodore Sogono said in a statement on Thursday.
“As a member of Do It Best through our Handyman banner since 2001, this transition creates growth opportunities that will allow us to continue delivering the quality and value that our shoppers expect while also benefiting from an expanded network of suppliers and a broader range of products,” he added.
Analyst’s view
Alfred Benjamin R. Garcia, head of research at AP Securities, said the combination of True Value and Do it Best, which owns the Handyman brand, could simplify logistics and supply chain requirements for Robinsons Retail.
“RRHI also owns and operates 201 Handyman Do It Best stores in the Philippines, so a successful deal to sell True Value to Do It Best would just merge their two hardware brands together,” he told InsiderPH.
“Business as usual for now, and in the future if True Value becomes part of Do It Best it would be a positive for them since it will simplify their DIY and hardware segment,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
