After More Than 70 Years, Major Hardware Brand Files for Bankruptcy

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True Value, a prominent hardware wholesaler with over 70 years of industry experience, has filed for Chapter 11 bankruptcy and confirmed plans to sell its operations to one of its biggest rivals, Do it Best Corp. The company filed its bankruptcy petition in U.S. Bankruptcy Court for the District of Delaware and expects the acquisition process to be completed by the end of 2024.

True Value, which operates more than 4,500 locations across the U.S. and internationally, announced in a press release that the sale to Do it Best Corp. was the best course of action to secure a stronger future for the company. While the bankruptcy proceedings are underway, True Value’s day-to-day operations will continue, with customers unlikely to see any disruptions at the independently owned stores.

Chris Kempa, True Value’s CEO, explained the decision to pursue the sale. “After evaluating several strategic alternatives, we concluded that selling our business would maximize value for our retail partners and other stakeholders,” he said. Kempa further noted that Do it Best, which also has a long history in the home improvement sector, is well-positioned to continue supporting True Value’s associates, customers, and vendor partners.

Do it Best Corp Steps in as “Stalking Horse”

Do it Best Corp, formerly known as Hardware Wholesalers, has agreed to act as the “stalking horse” bidder, setting the base price for True Value’s assets during the bankruptcy process. The term "stalking horse" refers to the first bid made by a potential buyer to ensure that a fair market price is established for the company’s assets.

Dan Starr, CEO of Do it Best Corp, expressed optimism about the acquisition. “This is a strategic milestone for Do it Best and home improvement retailers worldwide. The acquisition, if completed, will offer True Value and independent hardware stores enhanced growth opportunities for years to come,” Starr said.

To support True Value through the bankruptcy process, Do it Best Corp has committed to providing additional funding if needed, ensuring the company can maintain operations during the proceedings.

True Value’s Business Remains Operational

Despite the bankruptcy, True Value emphasized that its network of independently owned stores would not be affected by the filing, with the exception of a single location in Palatine, Illinois, that the company owns directly. Customers can continue to rely on True Value for hardware products and services, as the company focuses on restructuring for future profitability.

True Value also outlined several pre-bankruptcy measures taken to improve its financial position, including modernizing legacy operations, enhancing operational efficiencies, and investing in marketing campaigns aimed at increasing profitability in 2024.

A Shifting Retail Landscape

True Value’s bankruptcy adds to a growing list of major retailers struggling in 2024. Other companies that have filed for bankruptcy this year include LL Flooring, Conn’s HomePlus, and Big Lots, reflecting the broader challenges facing brick-and-mortar stores in today’s competitive retail market.

As True Value navigates its Chapter 11 filing and sale process, the company remains committed to serving its 4,500 independent retailers and delivering trusted hardware products to customers across the U.S. and beyond.

This bankruptcy marks the end of an era for the 70-year-old hardware wholesaler, but with the acquisition by Do it Best Corp, it could also signal a new chapter of growth and opportunity for the iconic brand.