True Value Declares Bankruptcy, Company Expected To Be Sold

CHICAGO — Chicago-based hardware wholesaler True Value has declared bankruptcy and is expected to be sold, the company announced this week.

True Value filed for Chapter 11 bankruptcy but will continue its daily operations serving 4,500 independently owned retailers, according to a company news release published Monday. Do It Best, a hardware cooperative headquartered in Fort Wayne, Indiana, that serves thousands of member-owned locations, has put in a lead bid. The sale is expected to be done by the end of the year.

"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,” True Value CEO Chris Kempa said in the news release.

True Value stores are not part of the bankruptcy proceedings, except for one in Palatine. There are True Value locations in 38 Illinois communities.

True Value has $500 million to $1 billion in liabilities, according to Fox Business, which reported that Do It Best intends to pay $153 million for the company and take on roughly $45 million in obligations.

True Value is seeking to use its cash collateral to fund operations through the sale, with Do It Best committing to provide incremental capital if needed, according to the news release.

"A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world," Do It Best President and CEO Dan Starr said in the news release. "Do it Best has a proven track record of driving profitability through the most efficient operations in the industry.”