LL Flooring, formerly known as Lumber Liquidators, is closing 94 stores after filing for bankruptcy.
The Richmond, Virginia-based company announced on Sunday that it had initiated restructuring proceedings under the U.S. Chapter 11 bankruptcy court in Delaware. It said it was in “active negotiations with several bidders” in the hope of selling the company in the coming weeks.
And thanks to more than $130 million in financing, LL Flooring can keep more than 300 stores and its online platform open during the U.S. bankruptcy proceedings, with closing sales taking place at the select 94 stores. The 30-year-old company said it has no plans to close any more stores as part of the restructuring, but will continue to evaluate its presence “as needed.”
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“After extensive efforts to improve our liquidity position in a challenging macroeconomic environment, it was determined that initiating this Chapter 11 proceeding was the best path forward for the company,” said Charles Tyson, president and CEO of LL Flooring, in a statement. “Today’s move 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 sale of the remainder of the company as a going concern.”
LL Flooring is the latest retailer to close as inflation-stricken consumers hold back on big-ticket purchases, including homes. And with fewer homes being bought, fewer people are willing to spend money on home improvement projects like replacing their flooring, leading to lost sales and lower revenue for LL Flooring.
Other companies that have taken a hit in recent months include Big Lots, which also announced the closure of more than 300 stores across the U.S. this month after warning that it could close altogether for good. Earlier this year, 99 Cents Only Stores announced the liquidation and closure of all of its stores, and Conn’s HomePlus is closing all of its stores after the company recently filed for bankruptcy.
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Express, rue21, Z Gallerie, Red Lobster, Rite Aid, CVS, Walgreens, Family Dollar and Best Buy are among numerous other retailers that have recently either filed for bankruptcy or announced store closures.
But beyond market pressures, LL Flooring has been the subject of numerous controversies over the past decade.
In 2015, a 60 Minutes report revealed dangerous levels of formaldehyde in LL Flooring’s Chinese-made laminate flooring, causing the company’s stock to lose nearly half its value and sparking numerous class action lawsuits from customers. That same year, the company pleaded guilty in federal court to illegally importing hardwood flooring and was fined $13.15 million.
LL Flooring customers now only have until September 3 to redeem gift cards at remaining stores. Click here to check if your location is on the closures list.
