Hardware store files True Value Chapter 11, joins list of retailers going bankrupt this year

Longtime hardware retailer True Value is filing for bankruptcy.

The 75-year-old brand made the announcement on Monday, noting that it will sell its operations to rival retailer Do It Best.

In the announcement, True Value said it will continue to operate its 4,500 stores, as they are independently owned and operated.

“After carefully evaluating other strategic options, we decided that the sale of our business was the best way forward to increase value and better serve our retail partners and other stakeholders in the future,” said Chris Kempa, CEO of True Value, in a press release.

Kempa added, “We believe that entering this program with the promise agreed upon by Do It Best, which has a similar history of decades in the home improvement space and works with a focus on supporting members and helping them grow, is the greatest. the next beneficial step for True Value and our partners, customers, and sales partners.”

True Value joins a rapidly growing number of home improvement stores struggling amid inflation and a challenging housing market. That list includes Home Depot, Big Lots, and LL Flooring, which recently closed. As homeowners continue to cut costs to focus on non-negotiables, they are increasingly choosing to buy. Therefore, home repairs and updates have largely fallen by the wayside.

True Value’s Chapter 11 bankruptcy proceedings include a $153 million pony bid from Do It Best, which will be able to provide “significant cash consideration and a reasonable assumption of liabilities related to the going concern,” 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 have an impact on the hardware industry.

“The successful acquisition of True Value Goods will represent a milestone for Do It Best and home improvement retailers around the world,” said Starr.