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National retailer LL Flooring, formerly known as Lumber Liquidators, announced it was ending 30 years in business after attempts to find a buyer failed just weeks after filing for bankruptcy.
The Richmond, Virginia-based company, which until recently operated 442 stores nationwide, announced on its website that it would permanently close the stores after negotiations with multiple bidders failed to attract any bids. The company said last month that it had already begun closing 94 stores.
LL Flooring, a provider of hard flooring products and known as a strong competitor to Home Depot, filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware in early August and announced that it had secured a $130 million debtor-in-possession loan from a group of existing banks led by Bank of America.
LL Flooring to close 94 stores after filing for bankruptcy
LL Flooring store in Beltsville, Md. Retailer LL Flooring, formerly known as Lumber Liquidators, is set to close after 30 years in business after failed attempts to find a buyer just weeks after filing for bankruptcy. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
But LL Flooring said that under the provisions of Chapter 11 bankruptcy, it must obtain the highest or best offer for its business or assets.
With no buyers in sight, the company decided it would get the best value for its creditors by selling individual assets and holding store closing sales to wind down the business.
“As a result, it is with heavy hearts that I must announce that we are beginning the process of winding down our LL Flooring business and closing all of our stores,” CEO Charles Tyson wrote to customers.
“This is not the outcome any of us wanted. Since 1993, LL Flooring has been at the forefront of creating beautiful spaces, supporting our customers every step of the way, from choosing the right materials to arranging for safe, professional installation.”
The hardware company filed for bankruptcy last month but was unable to find a buyer. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
The closure will result in roughly 2,000 workers losing their jobs, according to CBS.
Tyson wrote that store closing sales will begin in all remaining stores on September 6th and will run over the next 12 weeks, with closing dates varying by store.
The company said that current open installation orders will be fulfilled within 30 days and that new installation orders have been halted.
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“We are proud to have served our customers for so many years and would like to once again thank you for your patronage and for trusting us with your flooring needs,” Tyson wrote.
We look forward to working with you through the closing process to provide you with a great deal.
Lumber Liquidators Flooring was founded in 1994 by Tom Sullivan, a building contractor who began purchasing surplus lumber from other companies. The company quickly grew to become one of the largest hardwood flooring retailers in the country and in 2010 expanded into Canada.
The company has been in a turbulent situation since “60 Minutes” reported in 2015 that what was then Lumber Liquidators' laminate flooring products contained high levels of the carcinogenic toxin formaldehyde imported from China. Formaldehyde is found in adhesives that manufacturers use to make composite wood products such as fiberboard, which is the base for laminate flooring.
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LL Flooring, a Beltsville, Maryland, store, announced it was closing down after 30 years in business after failing to find a buyer just weeks after filing for bankruptcy. (Nathan Howard/Bloomberg via Getty Images/Getty Images)
The retailer's shares immediately fell 23 percent to $39.73 following the news. Since filing for Chapter 11 bankruptcy protection last month, the company's shares have plummeted from 84 cents to 2 cents.
In late 2015, Lumber Liquidators pleaded guilty in federal court to illegally importing hardwood flooring and was fined $13.15 million the following year.
The company rebranded to “LL Flooring” in 2020.
