Major National Hardware Chain Files For Bankruptcy

True Value Hardware, the iconic hardware store we all grew up with, has just filed for Chapter 11 Bankruptcy.

It's happening time and time again. Companies are having to shut down locations, even entire companies, due to the struggling American economy.

True Value has been an American staple for over 75 years. They have now entered into an agreement to sell substantially all of their business operations to competitor Do it Best Corp.

The good news here is that True Value hardware stores themselves will remain open as all but one of those are independently owned.

But the True Value brand that oversees products and vendor purchases and day-to-day correspondence with the franchisee owners will have new owners.

“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," says True Value CEO, Chris Kempa.

Do it Best is no slouch business. They make around $5 billion a year in revenue and are the second biggest co-op franchise in America.

They operate over 4,000 stores across the world. It’s basically them, Ace Hardware and True Value. So with this acquisition, they are eating the competitor.