Another American icon has fallen victim to the Biden economy. True Value, the 75-year-old hardware giant, filed for Chapter 11 bankruptcy on Monday, signaling the latest casualty of a sluggish housing market, high mortgage rates, and inflation that continues to cripple businesses across the country.
The Chicago-based company, with 4,500 independently-owned retailers, announced it is seeking to sell the business to rival Do it Best, a move they claim is necessary to “maximize value” and keep their operations afloat. Do it Best, a Fort Wayne, Indiana-based wholesaler, has agreed to purchase True Value for $153 million in cash, according to court filings.

Chris Kempa, CEO of True Value, expressed the company’s difficult decision in a statement: “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.” In simple terms, the housing market collapse left the company with little choice.