Well, here we go again—another iconic American company bites the dust, and guess who’s at the helm of the sinking ship?
That’s right, the Biden-Harris administration, whose economic “miracle” is leaving businesses no choice but to file for bankruptcy. This time, it’s wholesale hardware supplier True Value, which has been around for 75 years, filing for Chapter 11 and looking to sell itself off to rival Do It Best before the year is out. The hits just keep on coming.
Let’s be clear: the True Value retail stores, which are independently owned, aren’t part of the bankruptcy (yet). The wholesaler, however, is drowning in between $500 million and $1 billion in liabilities, according to their filing in Delaware bankruptcy court. Think about that for a second. This isn’t some new startup that miscalculated—this is a company that’s been a cornerstone of the hardware business for decades. But with inflation skyrocketing, supply chain disruptions, and the economy still struggling under Bidenomics, companies like True Value are finding it impossible to stay afloat.
True Value files for bankruptcy after 75 years, blames weak housing market for plunging sales https://t.co/AoVzwQRQwZ pic.twitter.com/QprTKJCxw7
— New York Post (@nypost) October 14, 2024
True Value’s CEO, Chris Kempa, tried to put a positive spin on it, saying they’ve evaluated “strategic alternatives” and decided selling the business is the best way forward. Translation: we’re out of options, and selling off to the highest bidder is the only way to keep the lights on. The “stalking horse” deal with Do It Best is worth $153 million in cash, plus another $45 million in contracts and obligations. Not exactly chump change, but hardly enough to mask what’s really going on here.
Do It Best, another veteran in the home improvement industry, is swooping in like a vulture, positioning itself as the potential savior. Dan Starr, president and CEO of Do It Best, sees this acquisition as a “strategic milestone.” And why wouldn’t he? Snapping up a competitor’s assets in the middle of an economic downturn is a power move, and if the deal goes through, it could be a lifeline for the independent hardware stores True Value serves. Starr boasts that Do It Best has a “proven track record of driving profitability.” Well, someone needs to because, under this administration, the only thing getting driven is businesses into bankruptcy court.
The reality is that True Value’s downfall is just one more casualty of a failing economy. Inflation is still squeezing businesses, and even though the White House keeps telling us things are getting better, companies like True Value are filing for bankruptcy left and right. And it’s not just mom-and-pop shops—it’s big, established names that have weathered recessions before. But under Biden and Harris? The economic storm is proving too much for even the strongest brands.
Bah Bye True Value. Kamala waves bye bye! pic.twitter.com/fGj5MExX9Q
— Noble Road (@noble_road) October 14, 2024
The question now is: how many more companies will follow True Value down this path before this administration admits its policies are choking the life out of the American economy? But don’t expect that honesty anytime soon. After all, they’ve got midterms to worry about, and apparently, pretending everything is fine is the game plan. Meanwhile, businesses are collapsing, and Americans are left wondering—what’s next?
