By James Gordon

Hardware wholesaler True Value filed for bankruptcy on Monday, seeking to sell its business to its closest rival, Do It Best, for $153 million.

True Value, which has been around for 75 years and sells hardware, tools, lumber, plumbing and heating supplies, as well as other home improvement goods, said its retail stores are independently owned and not part of the bankruptcy process.

Founded in 1948, True Value has said it will continue to supply products to its 4,500 locations.

The Chicago, Illinois-based company has between $500 million and $1 billion in total liabilities, according to its Chapter 11 petition in Delaware bankruptcy court viewed by Fox Business.

Fort Wayne, Indiana-based Do It Best agreed to serve as a 'stalking horse' bidder for True Value's assets, which means that True Value remains open to higher offers.

'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,' said Chris Kempa, True Value's CEO.

'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,' Kempa added.

Do It Best has agreed to pay $153 million in cash, take on about $45 million in contracts and other obligations, and hire some True Value employees by the end of the year.