Hardware company True Value is seeking Chapter 11 bankruptcy protection and is selling its business operations to its competitor, Do it Best Corp for an undisclosed amount.

True Value, headquartered in Chicago, hopes to better position the business toward long-term growth.

"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," says Chris Kempa, True Value's chief executive officer.

"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."

The company says the agreement will provide significant cash flow and liabilities protection for True Value.

It is an effort to modernize and expand its legacy operations while driving greater efficiencies, providing essential products & services, 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," says Dan Starr, the president & chief executive officer 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 consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come."

The sale will not affect the 4,500 independently owned True Value retail stores.

To support the day-to-day operations through the sale, the 75-year-old brand is seeking to use its cash collateral to fund operations.

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

True Value's goal is to complete the sale by the end of the year.

True Value stores are independently owned; thus, they're not a part of the Chapter 11 proceedings albeit one company-owned store located in Palatine, IL.

According to an annual market measure report by the North American Hardware and Paint Association (NHPA), the hardline industry known for its home improvement, home maintenance, and do-it-yourself projects, made roughly $379.9 billion year-to-date in 2023.