True Value, a hardware store brand, filed for Chapter 11 bankruptcy and sold almost its entire business to a competitor.
According to a company press release, True Value said it will continue its day-to-day operations, selling equipment to more than 4,500 independently operated stores, as they are not part of bankruptcy proceedings and will remain open during the Chapter 11 process.
The bankruptcy filings come as the housing market stagnates and consumers are more cautious about spending money on discretionary purchases such as hardware tools.
Companies like LL Flooring and Big Lots have gone through similar problems that caused them to file for Chapter 11 bankruptcy.
The company True Value agreed to sell to in order to stay in business is Do It Best, a wholesale retailer of computer equipment, home improvement supplies and lumber to independent retailers.
Unless True Value receives a better offer, the deal with Do It Best will likely close before the end of 2024.
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