Kansas City Faces Job Cuts as True Value Hardware Plans Warehouse Closure Amid Bankruptcy

Kansas City Facing Job Cuts as True Value Hardware Moves Through Bankruptcy

Kansas City is bracing for some tough news, as the beloved hardware store chain, True Value Co. LLC, has announced plans to close its warehouse in the area and lay off around 70 employees if a proposed sale doesn’t go through. This news comes as the company navigates through Chapter 11 bankruptcy.

Details of the Warehouse Closure

The True Value warehouse located at 14900 U.S. Highway 71 is set to shut its doors if the company can’t seal a deal with a potential buyer. According to a filing made under the Worker Adjustment and Retraining Notification Act on October 15, the closure would start on December 7, with layoffs scheduled for December 14. Out of the 70 employees affected, the majority—51 people—work as merchandise handlers.

Who is Taking Over?

True Value is in the midst of selling its business operations to a fellow home-improvement company, Do it Best Corp., based in Fort Wayne, Indiana. Do it Best has been tagged as the “stalking horse” bidder in the bankruptcy process, which sounds more dramatic than it is. What this means is that they will start a competitive bidding process aimed at finding the right buyer for True Value’s business.

The Bigger Picture

True Value’s troubles began brewing not too long after the pandemic, as the housing market started to slow. Many people have been tightening their belts, cutting back on discretionary spending. This shift in consumer behavior has meant fewer hardware sales, which has put the squeeze on this once-popular chain.

A Closer Look at the Impact

While it’s certainly upsetting to see local employees facing job losses, there is some good news: none of True Value’s independently owned retail stores will close as part of this bankruptcy process. The locally-owned stores should continue to operate as usual, which is a relief for many residents who rely on them for their home improvement needs.

Looking Ahead

The sale of True Value’s operations is expected to be finalized by the end of the year if everything goes according to plan. However, the uncertainty surrounding the deal leaves the fate of the Kansas City warehouse—and its employees—up in the air. For those working at the facility, the next couple of months will likely be filled with tension and anxiety as they await the outcome of the sale.

What Can Affected Employees Expect?

For employees facing layoffs, it’s important to know that there are resources available. Many local programs can help with job searching, skills training, and even financial assistance during this tough transition period. It’s also a good time to start networking and looking for new opportunities, whether in the same field or branching out into new territory.

A Community Support System

The community has always come together in times of need, and this situation may be no different. Local organizations and fellow businesses will hopefully rally to support those affected by the layoffs, providing job leads and moral support.

Final Thoughts

As Kansas City faces this unsettling news, it’s clear that change is on the horizon for True Value. While the focus now rests on the potential sale and what it means for local employees, there’s a glimmer of hope that with change often comes new opportunities. The local community is encouraged to stay informed and supportive as this situation unfolds over the coming months.