Hardware Store True Value Declares Bankruptcy, Sold to Hardware Rival

The 75-year-old hardware business, True Value, has filed Chapter 11 Bankruptcy.

According to a press release from True Value, day-to-day operations will continue much as they have been. The company will still sell hardware and other homeware tools to its independently operated locations, totalling 4,500. True Value has stated that its stores are not part of the bankruptcy proceedings, so they will remain open.

True Value files Chapter 11 Bankruptcy.Photo byHelen H. Richardson/The Denver Post/Getty Images via CNN Newsource

According to the bankruptcy court filings, True Value stated that because of the housing market stall, they are in a significant cash crunch.

“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.

Rival company Do It Best, a wholesale company, plans to acquire True Value by the year's end.