Standard True Value in Fresno is one of 4,500 branded stores in the U.S. that buy their inventory from the Chicago-based wholesaler that filed for bankruptcy protection Monday. Stores are not part of the proceedings. Google Street View photo

Chicago-based True Value Company, L.L.C., with more than a dozen affiliated stores in the Central Valley, announced it has filed for bankruptcy protection and plans to sell itself to another home improvement industry player.

True Value will continue its day-to-day operations serving 4,500 independently owned retailers as one of the world’s leading hardware wholesalers. The True Value brand has been around for 75 years.

“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,” said Chris Kempa, True Value’s CEO.

Potential buyer Indiana-based Do It Best is a member-owned hardware, lumber and building materials cooperative with more than 2,000 locations. It reported 30% sales growth over the last five years.

If consummated, the sale would create a worldwide store network exceeding 8,000 locations in the U.S. and more than 50 countries around the world.

“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. We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value,” Kempa added.

True Value’s sale process is the next step in a series of actions that the Company has taken in 2024 to better position the business and its brand for the long term, according to a news release, including modernizing its legacy operations, driving greater efficiencies, and investing in additional marketing campaigns.   

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

True Value is requesting a bankruptcy court designate Do it Best as a “stalking horse,” or a lead bidder in a competitive process overseen by the court. The Company is targeting completion of the sale process by year end.

With the exception of one company-owned True Value store in Palatine, Illinois, True Value stores are independently owned and not part of bankruptcy proceedings. True Value-branded stores are prevalent in rural communities in the Central Valley, including Mendota, Tranquility, Yokuts Valley, Lindsay and Avenal.