National hardware retailer True Value has filed for bankruptcy and will be sold to a competitor.
Chicago-based True Value filed for Chapter 11 protection Monday. The 75-year-old privately held company’s assets will be sold to Indiana-based Do it Best. True Value will continue day-to-day operations, including selling hardware and homegoods to 4,500 independently operated locations during the bankruptcy process, the company said in a press release.
“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 in a statement.
“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.”
The company cited a slowdown in consumer spending and a slump in the housing market as reasons for its financial difficulties.
Operations at individual True Value stores will continue. According to CBS News, the chain operates as a member-owned wholesale cooperate that sells products to hardware sellers, garden centers, industrial distributors and other retailers.
The sale to Do it Best is expected to be complete by the end of the year.
Story by Leada Gore, AL.com.
