True Value Announces Bankruptcy Filing and Sale to Do It Best

Oct. 15, 2024, 2:30 p.m. Business

True Value Corporation, the well-known hardware retail cooperative, has announced its bankruptcy filing and subsequent sale to Do It Best Corporation, another major player in the hardware industry. This news has sent shockwaves through the sector, as True Value has been a staple in the industry for over 70 years. The decision to file for bankruptcy comes as a result of financial hardships and challenges faced by the company in recent years.

True Value has struggled to compete with larger hardware chains and online retailers, leading to a decline in sales and profitability. The COVID-19 pandemic further exacerbated the situation, as lockdowns and restrictions impacted foot traffic in stores. This has ultimately led True Value to explore strategic alternatives to address its financial woes.

In a statement, John Hartmann, CEO of True Value, expressed regret over the decision to file for bankruptcy but emphasized that it was necessary to ensure the company's long-term viability. He stated, "This was a difficult decision, but one that we believe is in the best interest of True Value and its stakeholders. We are confident that this sale to Do It Best will provide the necessary support and resources to revitalize the True Value brand and ensure its continued success in the future."

Do It Best Corporation, based in Fort Wayne, Indiana, is a member-owned hardware cooperative with over 3,800 stores worldwide. The acquisition of True Value is seen as a strategic move to strengthen its market position and expand its reach in the industry. Dan Starr, CEO of Do It Best, commented on the acquisition, stating, "We are excited to welcome True Value into the Do It Best family. We believe that this acquisition will create synergies and opportunities for growth that will benefit both our organizations."

The sale to Do It Best is subject to approval by the bankruptcy court and is expected to be finalized in the coming months. In the meantime, True Value will continue to operate its stores and support its members during the transition period. The company has assured customers and suppliers that it will remain business as usual and there will be no disruptions to operations.

The news of True Value's bankruptcy filing and sale has sparked discussions within the industry about the challenges faced by traditional brick-and-mortar retailers in the age of e-commerce and big-box stores. Many are viewing this as a wake-up call for smaller retail cooperatives to adapt and innovate in order to survive in a rapidly evolving retail landscape.

As the hardware industry continues to evolve, it remains to be seen how the acquisition of True Value by Do It Best will impact the market. However, both companies are optimistic about the future and are committed to working together to ensure a smooth transition and continued success for their respective businesses.

In conclusion, the announcement of True Value's bankruptcy filing and sale to Do It Best marks a significant moment in the history of the hardware retail industry. While the news may be bittersweet for True Value and its stakeholders, it signals a new chapter for the company under the ownership of Do It Best. Time will tell how this acquisition will shape the industry and the future of both companies.