True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling its operations to rival company Do it Best. The initial bid from Do it Best is for $153 million, with True Value mentioning that its 4,500 independently operated locations will continue to operate during the Chapter 11 process. The bankruptcy filings cite a cash crunch due to the housing market stall and changing consumer behavior towards discretionary purchases, like hardware. Despite facing challenges, True Value’s stores will remain open as they are not part of the bankruptcy proceedings.
The bankruptcy filings also mention the struggles faced by other retail chains, like Big Lots and LL Flooring, which have also declared bankruptcy. Larger rivals like Home Depot and Lowe’s have experienced a decline since the pandemic boom but are in a stronger financial situation than True Value. True Value CEO Chris Kempa stated that after evaluating strategic alternatives, the decision to sell the business was made to maximize value and best serve retail partners and other stakeholders in the future.
Do it Best, a member-owned wholesaler specializing in hardware, lumber, and home goods, is set to acquire True Value’s operations. Do it Best CEO Dan Starr expressed confidence in the acquisition, stating that it would provide True Value and independent hardware stores with strong opportunities for growth. The deal with Do it Best is expected to close by the end of the year, unless better offers are presented. This partnership aims to drive profitability through efficient operations, enabling both companies to thrive in the industry for years to come.
The sale of True Value to Do it Best marks a significant transition for the hardware store brand. With Do it Best known for its efficient operations and track record of profitability, the acquisition is positioned to benefit True Value and its network of independent stores. The deal aligns with True Value’s commitment to maximizing value and ensuring the continued success of its retail partners in a challenging retail landscape.
As True Value undergoes this restructuring process, its priority remains on serving its customers and maintaining day-to-day operations at its stores. The retention of its independently operated locations during the Chapter 11 process emphasizes the brand’s dedication to its retail partners and stakeholders. By navigating the bankruptcy proceedings and working towards a successful acquisition by Do it Best, True Value aims to secure a positive future for its business and continue providing quality hardware and homeware tools to consumers.
In conclusion, True Value’s decision to file for bankruptcy and sell its operations to Do it Best reflects the challenges faced by retailers in the current economic climate. By partnering with Do it Best, True Value aims to strengthen its position in the market and drive growth opportunities for its network of independent stores. The acquisition, expected to close by the end of the year, signifies a new chapter for True Value and its commitment to serving customers, retail partners, and stakeholders in the years to come.
