MJP –
LL Flooring, previously Lumber Liquidators, announced the closure of ninety-four locations out of more than 300 across the country and filed for Chapter 11 bankruptcy late Sunday night.
“After thorough evaluations of our liquidity position in light of the current macro environment, it has been determined that the Company would be best served by commencing this Chapter 11 process,” stated Charles Tyson, President and Chief Executive Officer of LL Flooring.
“The purpose of today’s action is to give LL Flooring more time and financial leeway as we shut down some stores, downsize our physical footprint, and seek a going-concert sale for the remainder 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 among the 31 states that are expected to have closings.
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Bakersfield, Burlingame, Elk Grove, Fairfield, Fresno, Rancho Cucamonga, Salinas, San Diego, Santee, Torrance, and Visalia are among the California locations that are set to close.
According to LL Flooring, the company has faced several economic and operational difficulties in the last year as a result of inflation, labor cost increases, changes in consumer purchasing habits, and the frequency with which these expenditures are being made.
A “commitment for debtor-in-possession (“DIP”) financing” of up to $130 million has been obtained by LL Flooring, according to a news statement. According to the company, the funds will allow it to keep running.
“As we go forward with this, our top priority is to keep providing excellent service to our customers and ensuring smooth collaboration with our vendors and partners,” Tyson stated. “Our associates consistently go above and beyond to ensure our customers have the best experience, and I am truly grateful for that.”
Court records show that the firm owes between one hundred and fifty million dollars to as many as one hundred thousand creditors, with assets ranging from $500 million to one billion dollars.
After going public with a rebranding in April 2020, Lumber Liquidators became LL Flooring.
