True Value declares bankruptcy and sells itself to a hardware rival
By By Jordan Valinsky, CNN,
4 hours ago
NEW YORK — 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.
True Value is selling "substantially all" of its business to rival Do it Best.
In bankruptcy court filings, True Value said it faces a significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware. Bigger rivals like Home Depot and Lowe’s have also been in a yearslong slump since the pandemic boom, but they remain in a significantly stronger financial situation than True Value.
Still, a number of other chains have voiced similar problems that also tipped them into bankruptcy, including Big Lots and LL Flooring.
More store closures could be coming, too. Big Lots is in the process of closing roughly 300 of its 1,400 store across the United States.
“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,” said True Value CEO Chris Kempa in a release.
Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.
“Do it Best has a proven track record of driving profitability through the most efficient operations in the industry,” said Do it Best CEO Dan Starr in a statement. “This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
The transaction with Do it Best is expected to close by the end of the year, unless there’s better offers.
DirecTV is buying Dish and Sling, a deal it has sought to complete for years as the company seeks to better compete against streaming services that have become dominant.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
Comments / 0