True Value files for bankruptcy, sells out to rival Do It Best

True Value, a 75-year old Chicago-based hardware retailer, has entered into an agreement to sell “substantially all of the company’s business operations” to rival Do It Best and has also begun Chapter 11 bankruptcy proceedings as part of the acquisition process, according to a Monday announcement .

True Value, which operates 4,500 independently-owned U.S. and international outlets, said stores will remain open throughout the proceedings.

“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,” Chris Kempa, True Value’s chief executive officer, said in a press 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.”

True Value currently operates 31 stores in Utah, according to the company’s website.

Hardware stores and home improvement centers saw an explosion in sales amid pandemic conditions as homeowners and apartment dwellers invested in improving living spaces that were suddenly occupied during work hours. The boom, however, dissipated as workers returned to the office and inflation, along with a stagnating housing market, put the brakes on home project spending.

Earlier this year, Joe Derochowski, home industry adviser at the market data company Circana, told NBC News that consumers were backing off big, home-related expenditures as inflation put extra strain on household budgets.

“Major home renovation projects are on hold as consumers watch their finances, but they still have an appetite for lower-cost improvements they can do themselves,” Derochowski said.

In its own Monday announcement of the pending deal, Do It Best said the acquisition aligns with the company’s long-standing commitment to “championing independent home improvement store owners through its proactive distribution network, broad selection of brand name products, and extensive menu of marketing services.”

“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world,” Dan Starr, Do it Best president and CEO, said in a press release. “Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”

When the deal closes, the acquisition would expand Do It Best’s store network to over 8,000 outlets in the U.S. and more than 50 countries around the world.

True Value had just over $6 billion in sales last year, down from a pandemic peak of $10.6 billion in 2020, according to data from Statista .