True Value, a 75-year-old hardware retail brand, has filed for bankruptcy and plans to sell itself to an industry rival.
The Chicago-based wholesaler announced Monday that it plans to sell "substantially all" of the company's operations to Do it Best for a reported $153 million.
Meanwhile, True Value said its day-to-day operations of selling hardware and home improvement tools to its 4,500 independently owned retailers will continue during the Chapter 11 process, as the stores are not included in the bankruptcy filing.
"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," said True Value CEO Chris Kempa. "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, which has over 75 years of experience as one of the world's leading hardlines wholesalers, said its agreement with Do it Best was reached following a "robust marketing process" from which the company emerged as the top bidder.
"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," said Do it Best CEO Dan Starr. "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."
