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       lite.cnn.com - on gopher - inofficial
       
       
       ARTICLE VIEW: 
       
       True Value declares bankruptcy and sells itself to a hardware rival
       
       By Jordan Valinsky, CNN
       
       Updated: 
       
       4:16 PM EDT, Wed October 16, 2024
       
       Source: CNN
       
       True Value, a 75-year old hardware store brand, has filed for
       bankruptcy and is selling substantially all of its operations to a
       rival, the company announced Monday.
       
       In a , True Value said it will continue day-to-day operations of
       selling hardware and other homeware tools to its 4,500 independently
       operated locations during the Chapter 11 process, which includes a from
       rival company Do it Best.
       
       True Value said its stores will remain open, because they are not part
       of the bankruptcy proceedings.
       
       In bankruptcy court filings, True Value said it faces a significant
       cash crunch as the housing market stalled and consumers have become far
       more picky about discretionary purchases like hardware. Bigger rivals
       like and Lowe’s have also been in a yearslong slump since the
       pandemic boom, but they remain in a significantly stronger financial
       situation than True Value.
       
       Still, a number of other chains have voiced similar problems that also
       tipped them into bankruptcy, including and 
       
       “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 in a release.
       
       Do it Best is a member-owned wholesaler that sells hardware, lumber and
       other home goods to independent stores.
       
       “Do it Best has a proven track record of driving profitability
       through the most efficient operations in the industry,” said Do it
       Best CEO Dan Starr in a statement. “This acquisition, if consummated,
       would provide True Value and independent hardware stores the strongest
       opportunities for growth for years to come.”
       
       The transaction with Do it Best is expected to close by the end of the
       year, unless there’s better offers.
       
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