New York
CNN
—

True Value, a 75-year-old hardware store brand, has filed for bankruptcy and is selling virtually all of its operations to a competitor, the company announced Monday.

In a news release, True Value said it will continue the day-to-day business of selling hardware and other household goods to its 4,500 independently operated locations during the Chapter 11 process, including a $153 million stalking horse bid from rival company Do it Best. .

True Value said the stores will remain open because they are not part of the bankruptcy proceedings.

In bankruptcy court filings, True Value said it is facing a significant cash crunch as the housing market has stalled and consumers have become much more picky about discretionary purchases such as hardware. Larger rivals like Home Depot and Lowe’s have also suffered a yearlong slump since the pandemic, but they are still in significantly stronger financial shape than True Value.

Still, a number of other chains have raised similar concerns that have also led them to bankruptcy, including Big Lots and LL Flooring.

“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,” True Value CEO Chris Kempa said in a statement. a press release.

Do it Best is a member-owned wholesaler that sells hardware, lumber and other home goods to independent stores.

“Do it Best has a proven track record of driving profitability through the most efficient operations in the industry,” said Dan Starr, CEO of Do it Best, in a statement. “This acquisition, if completed, would provide True Value and independent hardware stores with the strongest growth opportunities in the coming years.”

The transaction with Do it Best is expected to close by the end of the year unless better offers emerge.