True Value Files for Bankruptcy, Sells Itself to a Rival

True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday. In a press release, True Value said it will continue day-to-day operations of selling hardware and other 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 said its stores will remain open because they are not part of the bankruptcy proceedings. Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.

Total Retail's Take: True Value has been challenged by the post-pandemic slump that has impacted the home improvement sector, including notable competitors The Home Depot and Lowe's, among others. By selling itself to Do it Best, True Value is helping to bolster the strength of independent hardware stores. The combined organization will look to serve local communities' home improvement needs, offering an alternative to the big-box stores that dominate the market currently.