True Value files for bankrupcy: Will it close its stores?
True Value Company LLC, the wholesale arm of the business, initiated voluntary Chapter 11 proceedings in the Bankruptcy Court for the District of Delaware.
True Value, the hardware store brand with a 75-year legacy, has filed for Chapter 11 bankruptcy protection. This move comes as the company faces significant financial challenges, having liabilities of up to $1 billion.
“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,” True Value CEO Chris Kempa said in a statement.
However, customers and store owners can breathe a sigh of relief as this doesn’t spell the end for the hardware chain.
What the bankruptcy means for your local store
The good news is that True Value’s 4,500 retail locations are not part of the bankruptcy proceedings. These stores are independently owned and operated, which means they will continue to serve customers as usual.
The only exception is a single company-owned store in Palatine, Illinois, which is included in the bankruptcy filing.
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During the bankruptcy process, True Value has committed to maintaining its day-to-day operations. This means the company will continue to supply products to its network of independently owned retailers.
To secure its future, True Value has entered into an agreement to sell substantially all of its business operations to Do it Best Corp., a competitor in the home improvement industry. The sale is expected to be completed by the end of 2024.
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