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True Value declares bankruptcy and sells itself to a hardware rival
True Value declares bankruptcy and sells itself to a hardware rival
By Jordan Valinsky, CNN
2 minute read
Published 1:41 PM EDT, Mon October 14, 2024
True Value is selling "substantially all" of its business to rival Do it Best. Helen H. Richardson/The Denver Post/Getty Images
New York (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 press release, 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 $153 million stalking horse bid 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 Home Depot 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 Big Lots and LL Flooring.
{snippet}
By Jordan Valinsky, CNN
2 minute read
Published 1:41 PM EDT, Mon October 14, 2024
True Value is selling "substantially all" of its business to rival Do it Best. Helen H. Richardson/The Denver Post/Getty Images
New York (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 press release, 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 $153 million stalking horse bid 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 Home Depot 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 Big Lots and LL Flooring.
{snippet}