Hardware wholesaler True Value has filed for bankruptcy amid plans to sell its business to its home improvement rival Do It Best.

True Value said it has filed motions with the bankruptcy court to continue paying wages and benefits to its employees, as well as offer support programs for customers. The company aims to complete its sale to Do it Best by year-end. True Value serves more than 4,500 stores worldwide with total retail sales of $10 billion, according to the company.

Long-time hardware retailer True Value announced Monday it has filed for Chapter 11 bankruptcy and is entertaining a bid to sell its assets to competitor Do it Best.

True Value, which sells a variety of home improvement goods like tools, lumber and plumbing, said in bankruptcy court filings that it has succumbed to slumping sales that have affected other companies in the sector.

Thompson True Value — a full-service hardware business in Marshalltown which can trace its origins to 1860 — remains open for business. “We will continue to offer our extensive product selection, machinery repair,

True Value Co. filed for bankruptcy in Delaware on Monday as it seeks to sell its business to rival Do it Best Corp.

Fort Wayne, Indiana-based Do It Best, another hardware chain, has agreed to serve as a "stalking horse" bidder for True Value's assets while True Value remains open to higher offers. Should it end up buying out True Value,

But the hardware retailer's 4,500 member stores are independently owned and will continue day-to-day operations.

Reuters reported that the 75-year-old company initiated the proceedings to enter into an agreement with Do It Best, which has offered to pay $153 million in cash to purchase the business.