True Value files for bankruptcy and merges with longtime hardware rival in major industry shift

The beloved hardware company, True Value, officially declared bankruptcy on Monday after being in operation for 75 years. According to a press release issued by the company, they will also be merging operations with their longtime rival, Do it Best. The company stated that it will continue day-to-day operations of selling hardware while undergoing the Chapter 11 bankruptcy process .

"True Value Company LLC one of the world's leading hardlines wholesalers, today announced that it has entered into an agreement to sell substantially all of the Company's business operations to home improvement industry peer Do it Best Corp," the press release said via PRNewswire. "To complete the sale in the most efficient manner, True Value and certain of its affiliates initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware."

"True Value will continue its day-to-day operations serving 4,500 independently owned retailers that rely on True Value for the right products, trusted expertise, and its 75-year-old iconic brand," the release continued. "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 via the release.

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"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," continued Kempa. "We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value."

According to the release, "True Value's sale process is the next step in a series of actions that the Company has taken in 2024 to better position the business and its iconic brand for the long term." Dan Starr, Do it Best President & Chief Executive Officer, was quoted saying that they would allow the brand "the strongest opportunities for growth."

"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," Starr said. "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."

It was reported by CNN that True Value would be keeping all of its stores open as they are not part of the bankruptcy proceedings. According to the filing, True Value stated that they faced a significant cash crunch as the housing market stalled and consumers started becoming picky . According to the release, the deal with Do It Best is expected to close at the end of the year unless True Valu gets a better offer.