True Value Seeks to Terminate Pension Plan in Bankruptcy Court

The bankruptcy plan administrator for True Value Co. moved to terminate the hardware and wholesaler brand’s pension plan, saying it can’t afford the costs.

True Value sold its assets out of bankruptcy late last year, leaving an administrator to implement the shell entity’s wind-down process. The administrator is now seeking court approval to enter into a trusteeship agreement with the Pension Benefit Guaranty Corp.

The motion, filed Wednesday in the US Bankruptcy Court for the District of Delaware, would terminate the company’s pension plan as part of its post-bankruptcy wind-down.

The administrator, Michael Goldberg, called the move “a sound exercise of business judgment,” saying the termination is necessary to protect the interest of plan participants. He’s looking to end the plan without incurring any liability under the Employee Retirement Income Security Act.

“Here, the Post-Effective Date Debtors lack the resources to continue the Pension Plan; indeed, this is a textbook case for pension plan termination,” the administrator said in the motion.

The motion said the company would need to terminate its health and life insurance plans for over 300 beneficiaries as part of its Chapter 11 process absent a deal to continue providing such benefits.

The request comes after US Bankruptcy Judge Karen B. Owens approved an asset sale to rival Do it Best Corp., which paid $153 million in cash and assumed up to $45 million in administrative expense claims, in November.

The PBGC has determined that the pension plan will be unable to pay benefits when they are due and must therefore be terminated, with the PBGC appointed as trustee, according to the filing.

The plan administrator said he has authority to sign the agreement because he was appointed the sole officer and representative of the company’s post-bankruptcy board of managers. He is seeking court approval “out of an abundance of caution,” the motion states.

The Chicago-based company initially filed for bankruptcy in Delaware in October 2024.

A week after it filed for bankruptcy, the company moved to establish an official committee representing retirees to facilitate termination or modification of its benefit plans. The move was required under bankruptcy law for cases involving non-union individuals, the administrator said in the filing.

True Value was represented by Skadden, Arps, Slate, Meagher & Flom LLP. Young Conaway. The plan administrator is represented by Young Conaway Stargatt & Taylor LLP.

The case is True Value Co., Bankr. D. Del., No. 24-12337, motion 6/4/25.