A long-standing hardware wholesaler, True Value, is filing for bankruptcy.
The 75-year-old brand made the announcement Monday, noting that it will sell its operations to rival wholesaler, Do It Best.
In the announcement, True Value said it will continue operations at its 4,500 stores, as they are independently owned and operated.
“After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future,” said Chris Kempa, True Value’s chief executive officer, in the press release.
Kempa added, “We believe that entering the process with an agreed offer from Do It Best, who has a similar decades-long history in the home-improvement space and also operates with a focus on supporting members and helping them grow, is the most beneficial next step for True Value and our associates, customers, and vendor partners.”
True Value joins the rapidly growing number of home improvement stores that are struggling amid inflation and a challenging housing market. That list includes Home Depot, Big Lots, and LL Flooring, which recently shuttered. As homeowners continue cutting costs to focus on nonnegotiables, they’re becoming choosier about purchases. Therefore, home renovations and updates have largely fallen by the wayside.
True Value’s Chapter 11 bankruptcy proceedings include a $153 million stalking horse bid from Do It Best, which will be able to offer “significant cash consideration and meaningful assumption of liabilities related to the ongoing business,” the release said.
According to the announcement, True Value hopes to complete the sale by the end of 2024.
Dan Starr, Do It Best president and chief executive officer, explained in the release that the sale will be an impactful one for the hardware industry.
“A successful acquisition of True Value assets would represent a strategic milestone for Do It Best and home improvement retailers around the world,” Starr said.