True Value Files Chapter 11 Bankruptcy and Agrees To Sell Itself to Hardware Rival

True Value, a hardware wholesaler, has filed for Chapter 11 bankruptcy and sold almost all of its operations to a competitor.

According to a company press release, True Value said it would continue selling hardware to more than 4,500 independently operated stores during the bankruptcy process, as they are not part of the proceedings and will remain open. The company has agreed to sell its business operations to home improvement company Do it Best Corp.

Chris Kempa, True Value’s chief executive officer, stated, “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. 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.”

This sale will better position the brand for more years in the hardware business. Pending changes include “modernizing its legacy operations, driving greater efficiencies, and investing in additional marketing campaigns.”

“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world,” said Dan Starr, Do it Best president and chief executive officer. “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.”

True Value Began Modernizing Its Public Face Over the Past Year

True Value, a 75-year-old hardware store brand, has declared bankruptcy and is selling itself to a hardware rival https://t.co/pJNwIG7rne

— CNN (@CNN) October 14, 2024

In April 2024, True Value began modernizing its public face for the first time in a decade. It debuted a new ad campaign targeted at luring new customers to stores.

The campaign was designed to connect consumers with hyper-local product solutions at their specific community stores. According to the announcement in April, “Campaign creative utilizes a re-working of the famous ‘80s song “Jukebox Hero” to turn everyday homeowners into hardware, lawncare and paint heroes.”

The spots have continued to evolve throughout the year to reflect the seasonal needs of the store’s local consumers. The Hardware Hero campaign reads, “Your home is your kingdom, and being the master of that makes you feel heroic. When we fix or improve something, no matter how big, or small, you’re proud of it. Especially when you overcome those bumps along the way. So, head to your local True Value, where our expert guidance will help you become the hero of your next project.”

True Value has 75 years of experience serving independent hardware retailers.