MJP –
Following its bankruptcy and subsequent liquidation, a home improvement company has decided to shut down all of its outlets.
After two failed rescue attempts, home improvement firm LL Flooring said it would be closing and liquidating all of its remaining stores—more than 400 locations in 47 states.
Company officials decided to dissolve after turning down stalking-horse offers from F9 Investments and Issac Capital Group.
According to a statement made by Chief Restructuring Officer Holly Etlin on September 2, F9’s first offer grossly underestimated the value of LL Flooring’s stock and failed to take other assets, such as furniture, fixtures, equipment, and IP, into consideration.
With bids from liquidators about 20% more than F9’s offering, the company’s worth may have dropped by $30 million or more.
Another proposal from F9 fell short of the inventory valuation required for liquidation as well.
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Also, the inability to execute a deal within the Chapter 11 timeframe was caused by Issac Capital’s proposal not having committed financing.
The flooring company LL Flooring, which had a rough go of it in the home improvement and real estate markets after the COVID-19 pandemic’s drop, sought bankruptcy protection on August 11 in the United States Bankruptcy Court for the District of Delaware. The company plans to liquidate its assets in the process.
There was an initial proposal to shut down and liquidate ninety-four stores.
To improve cash flow, LL Flooring tried to sell its Sandston, Virginia distribution center, but the sale was unsuccessful due to the drop in revenue.
Despite the company’s best efforts, it felt that declaring bankruptcy was the best course of action to enable the sale of its whole enterprise.
The Street reports that LL Flooring will now begin winding down operations, closing retail stores, liquidating assets at the store level, and likely selling off other assets like intellectual property and furniture, fixtures, and equipment to different buyers. This comes after no viable buyer has emerged during the bankruptcy proceedings.
Juniper Calloway is a dedicated journalist with 3 years of experience in covering hard-hitting stories. Known for her commitment to delivering timely and accurate updates, she currently works with MikeandJon Podcast, where she focuses on reporting critical topics such as crime, local news, and national developments across the United States. Her ability to break down complex issues and keep audiences informed has established her as a trusted voice in journalism.
