Chicago-based hardware retailer True Value files for bankruptcy, agrees to sale; independently owned stores will continue operations

CHICAGO — Long-time Chicago-based hardware retailer True Value has filed for Chapter 11 bankruptcy and entered into an agreement to sell its operations to Do It Best Corp., the company announced this week.

Do It Best, based in Fort Wayne, Ind., is purchasing the 75-year-old company for $153 million, according to court documents. To complete the sale as efficiently as possible, True Value said in a press release, it initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware.

However, True Value’s 4,500 stores are independently owned, except for one company store in Palatine. True Value says its independently owned stores are not part of the Chapter 11 proceedings.

True Value has 10 locations in Chicago, plus more locations in greater Chicagoland.

“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 CEO, said in the 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 says it’s targeting the end of the year for completion of the sale.

“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 the 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.”

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