LL Flooring (formerly Lumber Liquidators), the flooring hardware company that was once a strong rival to Home Depot, is closing all of its stores just weeks after filing for bankruptcy.
The 30-year-old hardware store, which once operated more than 400 stores in the U.S., said it had decided to liquidate after failing to receive “the best offer for the company” after several rounds of negotiations.
“LL Flooring has worked hard to pursue a going concern sale of the company and has been in active negotiations with multiple bidders. These discussions have not resulted in a proposal with the necessary financing that would maximize the value of LL Flooring,” it said. The company said in an update: Regarding restructuring plans.
“The provisions of Chapter 11 bankruptcy require us to obtain the highest or best offer for our business or assets, and in this case it has been determined that selling our individual assets, holding closing sales of our stores and winding down our operations will provide the greatest value to our creditors.”
LL Flooring announced that it will begin an “orderly wind-down of operations” the week of September 3rd, with closing sales beginning September 6th at all remaining stores.
The closure process is expected to be completed within 12 weeks, although closure periods will vary by store.
LL Flooring filed for Chapter 11 bankruptcy protection on August 11 and began “voluntary reorganization efforts.”
The company's sales have been steadily declining over the past few years and it has been under reports of impending bankruptcy since July, likely as high interest rates and persistent inflation lead consumers to cut back on spending on home improvements.
Shares of LL Flooring Holdings Inc. have fallen from 84 cents to 2 cents since the company filed for Chapter 11 bankruptcy protection.
Customers who place an order will have installation done within 30 days, but the company will stop offering installation services after September 6th.
According to the store, all sales will be confirmed after September 6th, meaning that people who have placed orders and paid a deposit will no longer be able to cancel or receive a refund.
“We have been proud to serve you over the years and would like to thank you again for your patronage and for choosing us for your flooring needs,” CEO Charles Tyson wrote to customers.
Lumber Liquidators, founded in 1994 by Tom Sullivan, changed its name to LL Flooring in 2021 after coming under fire in a 2015 “60 Minutes” investigation.
An investigation found that most of the supplier's flooring was imported from China and contained high levels of carcinogenic formaldehyde.
company It agreed to pay $33 million to regulators. in 2019 to settle federal charges regarding the safety of laminate flooring.
LL Flooring is the latest company to struggle because of lingering inflation and cash-strapped customers.
In July, Bob's Stores, a beloved store that has provided clothing to Northeast families for 70 years, announced it would permanently close all of its Northeast stores, becoming the latest casualty of U.S. retail.
The 21 stores in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Rhode Island permanently closed on July 14.
