Midwest Based Hardware Retailer Files For Bankruptcy
Recent years have shown that it's a difficult time for hardware-related businesses. The popular hardware store True Value went bankrupt in October 2024, ending the better part of a century in business. In November 2025, Home Depot announced a cut in its adjusted earnings per share forecast for 2025 because of slowing sales. Most recently, in early December 2025, North American Builders Supply (NABS) filed for bankruptcy in the U.S. Bankruptcy Court for the Northern District of Illinois. The hardware and building materials distributor is based in the Chicago-area suburb of Yorkville, Illinois, and sells products including lumber, siding, cabinetry, decking, hardware, windows, and more. It serves homeowners looking to DIY some renovations as well as professional builders, offering financing for those who need it.
According to the filing, NABS held assets of between $500,000 and $1 million with liabilities of between $1 million and $10 million owed to upwards of 49 creditors (via What Now). By filing for Chapter 11, the company may try to reorganize and remain in operation while working through the bankruptcy process under court supervision. Some companies are able to come roaring back after bankruptcy, but only time will tell if NABS will be able to restructure its assets enough to do the same.
The hardware industry is taking its toll on businesses
Financial struggles in hardware-related businesses are going beyond the recent bankruptcy filings: Even major hardware retailers like Home Depot and Lowe's have seen stagnating sales. Home Depot revealed in November 2025 that its fiscal year's third-quarter sales saw a comparable increase over 2024's Q3 of only 0.1% in the United States. Based on the slow sales, Home Depot lowered its expected earnings per share for 2025 from a 3% year-over-year decline to a 6% decline.
Lowe's reported similar numbers. Its sales grew only 0.4% year-over-year in the third quarter of fiscal 2025. Based on the slow year-over-year sales increase, Lowe's changed its full-year 2025 comparable sales outlook from flat-to-up-1% to flat. Lowe's has decided to pursue an aggressive acquisition strategy to combat slowing sales. For example, Lowe's acquired a 370-store retailer, Foundation Building Materials, in August 2025 for $8.8 billion.
The overall home improvement market has only a 2.5% growth forecast for all of 2025, according to the Home Improvement Research Institute (HIRI) — a figure HIRI lowered from 3.4% earlier in the year. Why are many hardware-related retailers and businesses struggling? Home Depot partially blamed its slowing sales on a lack of major storms compared to previous years, reducing sales of supplies to construction companies doing repairs to storm-damaged buildings. Lowe's blamed a difficult economic backdrop for its slowing sales. Additionally, increased lumber prices from tariffs are affecting the entire construction industry, including suppliers.