After 75 years, the hardware store True Value filed for Chapter 11 bankruptcy and will sell most of the company to one of its competitors.
True Value announced the bankruptcy filing and looming sale to Do it Best in a news release on Tuesday.
“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,” CEO Chris Kempa said in the release. “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. We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value.”
The sale to Do it Best, which is considered a “stalking horse” or lead bidder, should be finished by the end of the year.
The company will continue serving its 4,500 independently owned stores that sell True Value products. All but one store is independently owned and will not be sold. The lone company store is in Palatine, Illinois, True Value said.
It has already modernized its legacy operations and made other changes to the business, including adding more marketing campaigns.
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