True Value Declares Bankruptcy, Sells Itself To Hardware Rival

True Value, a 75-year-old hardware store brand, has filed for bankruptcy and will sell most of its operations to a competitor, the company announced, Jordan Valinsky reported for CNN.

Larger competitors such as Home Depot and Lowe’s have also experienced challenges since the pandemic boom but remain in stronger financial positions compared to True Value. I Photo: Mike Mozart Flickr

The company stated that it will continue day-to-day operations, supplying hardware and homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.

True Value noted that its stores will remain open, as they are not directly involved in the bankruptcy proceedings.

In court filings, True Value cited a significant cash crunch as the housing market slowed and consumers became more selective with discretionary spending on items like hardware.

Larger competitors such as Home Depot and Lowe’s have also experienced challenges since the pandemic boom but remain in stronger financial positions compared to True Value.

Other chains like Big Lots and LL Flooring have encountered similar difficulties, leading to their own bankruptcies.

“After a thorough evaluation of strategic alternatives, we concluded that the sale of our business was the best way to maximize value and serve our retail partners and stakeholders going forward,” said True Value CEO Chris Kempa.