Hardware Chain With Dozens of Michigan Stores Files for Bankruptcy Protection

An iconic hardware distributor that provides hardware products to roughly 4,500 retailers across the US has filed for Chapter 11 bankruptcy protection.

Chicago-based True Value initiated the bankruptcy process on Monday (10/14) in order to enter into an agreement with rival distributor Do It Best, which has offered to purchase the struggling wholesaler.

What's Next for True Value Hardware Stores?

True Value, which distributes hardware products to dozens of retailers in Michigan and about 4,500 stores nationwide indicates that all of its hardware stores will remain open during the bankruptcy process because each of them is independently owned and operated.

True Value stores are not part of the bankruptcy process.

Do It Best has offered to pay $153 million in cash, and hire some current True Value employees. The company will also take on about $45 million in obligations.

The Fort Wayne, Indiana-based company is considered a "stalking horse bidder" for True Value. That means that while Do It Best is technically the lead bidder, True Value has to remain open to accept other offers, according to Reuters.

Do It Best Gains Momentum

If the deal goes through, Do It Best will have a network of more than 8,000 locations in the United States and more the 50 countries in the world, according to a Do It Best press release.

Consummation of the deal is expected by the end of the year.

This news comes just months after home improvement rival LL Flooring made the decision to close 94 stores throughout the country including two in Michigan.