Wholesale hardware supplier True Value has filed for Chapter 11 bankruptcy and is aiming to be sold to rival Do It Best by the end of the year.

True Value stores, which are independently owned and operated, are not part of the bankruptcy, and the wholesaler said it will continue to supply products to those 4,500 locations. The iconic brand has been around for 75 years.

Retail True Value hardware store (Dorann Weber / Contributor/Getty Images)

True Value, which sells hardware, tools, lumber, plumbing and heating supplies and other home improvement goods, has total debts between $500 million and $1 billion, according to its Chapter 11 petition in Delaware bankruptcy court.

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“After a thorough review of strategic alternatives, we determined that selling our business was the path forward to maximize value and best serve our retail partners and other stakeholders going forward,” said Chris Kempa, CEO of True Value.

The sun sets over the brightly lit True Value hardware store on December 5, 2017 in Rangely, Colorado. Wholesale company True Value Co., which sells products to 4,500 independent True Value stores, filed for bankruptcy on Monday. (elen H. Richardson/The Denver Post via Getty Images/Getty Images)

“We believe that entering the process with an agreed offer from Do it Best, which has a similar decades-long history in the home improvement field and also operates with a focus on supporting members and helping them grow, is the most beneficial next step is for True Value and our employees, customers and supplier partners,” Kempa added.

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Fort Wayne, Indiana-based Do It Best agreed to act as a stalking horse bidder on True Value’s assets, meaning True Value remains open to higher bids. Do It Best agreed to pay $153 million in cash, assume approximately $45 million in contracts and other obligations and hire certain True Value employees.

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“A successful acquisition of True Value assets would mark a strategic milestone for Do it Best and home improvement retailers around the world,” said Dan Starr, president and CEO of Do it Best. “Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. This acquisition, if completed, would provide True Value and independent hardware stores with the strongest growth opportunities for years to come.”

Reuters contributed to this report.