True Value, the 75-year-old hardware store chain, has filed for Chapter 11 bankruptcy and is set to be acquired by its competitor, Do it Best.
The deal, valued at $153 million, is expected to be finalized by the end of the year, marking another major shift in the home improvement retail landscape.
In a press release, True Value stated that the decision to sell the company came in response to declining sales in the home improvement sector. Filing for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware, the company will continue to operate its 4,500 independently owned retail stores, which are not directly involved in the bankruptcy proceedings.
True Value CEO Chris Kempa emphasized that the sale to Do it Best, a company with a similar history in the home improvement industry, was the best option to secure the future of True Value’s business and retail partners.
Do it Best Corp., based in Fort Wayne, Indiana, has submitted the leading bid, or “stalking horse” offer, of $153 million for True Value. If successful, this acquisition would increase Do it Best’s network to over 8,000 locations worldwide. However, other bids could still emerge during the bankruptcy proceedings.
While Do it Best has not yet disclosed specific plans for True Value’s stores, the company expressed confidence in supporting True Value’s independent retailers and driving profitability in the years to come.
Despite the financial challenges, True Value’s 4,500 independent stores will remain open as the sale proceeds, providing continuity for customers and employees during the transition.
With input from Cincinnati.com and GoErie.
