Controversies surrounding the takeover of True Value by Do it Best

The declaration of bankruptcy (known in the USA as ‘chapter 11 filing’ according to the corresponding section of commercial law) of the US hardware co-operation True Value and its plan to be taken over by its competitor Do it Best continues to make waves in the USA. Not only the wholesaler Orgill has declared its intention to supply True Value dealers to a greater extent than before. The Hardlines Distribution Alliance, an association of more than 60 independent distributors, has also declared that it wants to support True Value dealers.

Opposition to the acquisition of True Value by Do it Best has come from PNC Bank, one of True Value's largest lenders. In a 119-page document, the bank lists its arguments against the takeover.

However, a member of True Value's board has filed a statement with the federal bankruptcy court appealing to the court to approve the takeover. Megan Menzer, owner…