True Value dealer writes to the judge
Concerned by a feeling of exclusion from the bankruptcy-court table, Michigan-based hardware store owner Shane Gamez took matters into his own hands.
He wrote a letter to the judge.
The letter, which was entered into the court’s docket on Oct. 28, is addressed to the Honorable Karen Jones, who is presiding over the True Value bankruptcy case, which includes the stalking horse bid from Do it Best to acquire assets of True Value out of bankruptcy.
Gamez, owner of True Value Bargain Depot in Prescott, Michigan, wrote strongly in favor of the Do it Best purchase as the best way forward, and warned of “widespread disruption and hardship” in the event of a liquidation.
The letter states: “I believe that the most viable solution for all parties involved is to allow Do it Best to purchase True Value through the bankruptcy proceedings. DO it Best has the resources and commitment to continue supplying or stores while ensuring we can serve our customers effectively. The alternative—a liquidation—would impact the operations and lives of tens of thousands of people who rely on True Value for their businesses.”
Contacted by HBSDealer, Gamez said the letter “came from the heart.”
“Obviously I can't speak for the 4,500 stores that are part of True Value. But I can tell you that every store owner that I have spoken with is very upset concerned about the future of their business,“ he said. “Especially stores who have recently signed up and signed contracts.”
There’s no scenario where a True Value dealer would welcome a liquidation, he added.
When True Value sold to ACON Investments in 2018, 30 percent of True Value Company remained under ownership of the co-op.
“Part of the issue is, I don’t know who is looking out for the shareholders of that 30 percent,” he told HBSDealer.
And while there has been much written on online message boards and social media, he didn’t know of any messages going to the person who is deciding the case.
“So I decided to write the judge, and I spent money out of my own pocket to have the letter overnighted to her,” he said.
Regarding the day-to-day operations, it’s business as usual at his True Value Bargain Depot store. A shipment arrived Wednesday morning, and “everything is running smoothly.” But there’s a lot of frustration for True Value dealers, he said.
“It feels like there’s not anybody representing the stores," he said.
