True Value hardware brand has filed for bankruptcy and plans to sell it all to a surprising rival. Operations for retail stores will remain open during the Chapter 11 process, so you'll still be able to shop there, for now.
Avoid the fate of bankruptcy by learning creative ways to crush your debt , and find out what happened to True Value and what their future will be.
Make Money: 8 things to do if you're barely scraping by financially
What caused the bankruptcy?
The hardware wholesaler has been unable to beat the cash crunch caused by the housing market crisis. Fewer people can afford homes, and those who can are more hesitant to spend money on less-than-necessary home improvement projects.
This has been a shared complaint in the home improvement hardware industry, tipping other brands into bankruptcy, too.
Big Lots and LL Flooring cited the exact root cause when they filed for bankruptcy earlier this year.
Who really has the cheapest auto insurance in your area? Check your zip code here. History of the True Value brand
True Value began as a cooperative between four hardware companies and a wholesale supplier founded in 1948. Accounting irregularities were discovered in 1999, leading to a huge loss and plummeting stock prices.
At that point, many hardware stores chose to leave, transitioning to competition such as Ace Hardware or Do It Best.
The future of True Value
True Value currently has about 4,500 independently operated retail locations that will remain open through the bankruptcy process.
Rival hardware company Do It Best has submitted a $153 million bid to purchase the failing brand, which is expected to be completed by the end of the year — unless there are better offers.
Avoid these money mistakes: 9 dumbest things smart people waste money on
Bottom line
True Value is likely going to disappear and be transitioned into Do it Best, with final announcements expected to occur before the end of the year.
The brand wasn't able to weather the economic storm, which is still ongoing. Prepare your own finances to withstand further downturns of the economy .
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
Local News
