Late on Sunday night, LL Flooring—formerly known as Lumber Liquidators—filed for Chapter 11 bankruptcy and declared it would be closing 94 of its more than 300 locations around the country.
In a statement, LL Flooring President and CEO Charles Tyson said, “After comprehensive efforts to enhance our liquidity position in a challenging macro environment, a determination was made that initiating this Chapter 11 process is the best path forward for the Company. Today’s step is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while pursuing a going-concern sale of the rest of our business.”
Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin are the 31 states where closings are anticipated.
Bakersfield, Burlingame, Elk Grove, Fairfield, Fresno, Rancho Cucamonga, Salinas, San Diego, Santee, Torrance, and Visalia are the California locations that are scheduled to close.
According to LL Flooring, the company has faced a number of financial and operational difficulties in the last year as a result of growing labor expenses, inflation, and changes in consumer purchasing patterns and the frequency of these purchases.
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A news statement states that up to $130 million has been committed to funding for debtor-in-possession (or “DIP”) for LL Flooring. According to the business, the funds would help it carry on with operations.
“As we move through this process, we are committed to continuing to serve our valued customers and to working seamlessly with our vendors and partners,” Tyson stated. “I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
The corporation owes $100 million to $500 million to up to 100,000 creditors, while it has assets between $500 million and $1 billion, according to court filings.
When Lumber Liquidators openly rebranded in April 2020, they became LL Flooring.
