Readers respond to the Do it Best-True Value deal
The Do it Best acquisition of True Value has brought closure to a long chapter in hardware retailing. But there remains an open book of possibilities for the newly combined entity.
HBSDealer has reported a variety of opinions and outlooks for the deal that has brought the True Value brand and many of its assets to Do it Best.
On a number of occasions— including here and here—we’ve heard from Dan Starr, Do it Best CEO. We’ve heard from True Value dealers, including Lee Kuenning, owner of four True Value stores in Ohio and chairman of the board of the True Value co-operative. We’ve also heard from Do it Best/True Value competitors, including Orgill’s CEO Boyden Moore and the Hardware Distributors Alliance.
More recently HBSDealer solicited responses from our readers — their takes on what happened in the past that led to the bankruptcy and what might happen in the future as the True Value brand survives. Here are several edited responses.
Where did the money go?
“As a True Value dealer for over 40 years, we felt anger and betrayal. Where did our money go? We paid our invoices on time, so who took the money? We want to keep the True Value name and we hope the company can get back on track with Do it Best. That being said, we've had to find alternate suppliers. We will probably keep our secondary supplier just out of caution to prevent from being blindsided and unprepared again.”
— Jerry Wasson
Private equity induced downfall
“True Value’s epitaph was written the minute the private equity group took ownership from the members of the cooperative. I am not sure what their strategy was, but without member involvement and support, the companies fate was sealed. I feel for all those True Value dealers who stuck with the cooperative through all those years of turmoil just to have their brand decimated by people that clearly had no idea what made the cooperative successful - which were the retailers of course.”
—Steve Mahurin, former CMO, True Value
Keeping the “True Value” brand
“There are a lot of negatives, for sure. It’s really too bad it had to come to this. But—when it all shakes out, we will be the largest hardware co-op—and we should have amazing buying power. The True Value stores get to go back to being a co-op, which I think we all appreciated more than we realized.
We have co-op management that is not fly-by-night, picked-up-off-the-street-folks. They have an interest in the company’s success. Also, I am very happy Do it Best wants to use True Value’s name, and keep True Value’s paint. We make the best paint in the industry and paint is my most profitable department.
The whole situation could have been better, but it could have been a ton worse. I am happy with the way it’s turning out, thus far.”
—Karla Robson, Slavens True Value, Cortez, Colorado
Big for big’s sake?
As a member of Do it Best for 30 years, I was disappointed that Do it Best leadership didn’t at least offer the membership the opportunity to weigh in on this.
… Does the True Value name really carry the weight it once did, especially after declaring bankruptcy? Back in the days of Pat Summerall being a spokesman, I would agree wholeheartedly. These days I don’t see that it’s worth $160 million. Even if it’s considering their proprietary brand names, I don’t see the value.
… It shouldn’t be overlooked that this was the company formed by the Cotter/ServiStar merger back in 1996. Growing for growing’s sake isn’t always the prudent move and it appears to me that this is what this was on Do it Best’s behalf: An immediate means to be able to say “we’re the biggest!” Do it Best needs to pay more attention to their business model and what brought them to where they are now.
— Bill Kuminecz, Big C Lumber
Vendor perspective: a haircut
“Sadly, we anticipate taking a significant haircut on the bankruptcy fallout. After entering into a vendor purchase agreement in late 2018, we successfully supplied their membership with facility improvements to warehousing and organization via storage racks, rack canopies, and steel frame buildings.
This all went very well until early October when they contacted us on a current project to confirm that it arrived and the member was satisfied with the results. After documenting the successful outcome, we awaited our mid-five figure remittance. Instead we received a bankruptcy notification.
With reference to the merger with Do it Best, we are cautiously optimistic that this will move forward in a positive direction. True Value has a large membership, as does Do it Best, which is a well-run organization. Merging these membership and vendor rosters will be a huge undertaking. Hopefully Do it Best can get that solidly connected in a reasonable timeframe.
— Chris Krauter, President, Krauter Solutions, Indianapolis, Ind.
