(WJET/WFXP) — LL Flooring, formerly known as Lumber Liquidators, filed for Chapter 11 bankruptcy late Sunday night.
The specialty flooring company announced it will close 94 locations nationwide of its over 300 stores.
LL Flooring is reorganizing and also hopes to sell the company, saying it is actively engaged in negotiations with “multiple bidders.” The company says that, during the Chapter 11 bankruptcy process, it will be “generally operating in the normal course.”
“After comprehensive efforts to enhance our liquidity position in a challenging macro environment, a determination was made that initiating this Chapter 11 process is the best path forward for the Company,” Charles Tyson, President and Chief Executive Officer of LL Flooring, said in a statement included in a press release. “Today’s step 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 going-concern sale of the rest of our business.”
Closings are expected in 31 states: 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 Virginian, and Wisconsin.
In Illinois, stores will close in South Elgin, Geneva, Mundelein, Crystal Lake as well as Bloomington, Champaign and East Peoria.
A full list of sites planning to close can be found at the LL Flooring website.
LL Flooring says that over the past year, it has experienced several economic and operational challenges due to inflation and the rising costs of labor, as well as a shift in how customers are spending and how often they make these investments.
This bankruptcy filing is part of a growing trend, with several major companies citing similar shortfalls that have led to the closure of stores and the filing for bankruptcy protection.
LL Flooring has received a “commitment for debtor-in-possession (“DIP”) financing” of up to $130 million, according to a press release. The company says the money will support LL Flooring’s continued operations.
“As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners,” Tyson said. “I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
According to court documents, the company holds $500 million to $1 billion in assets and owes $100 million to $500 million to up to 100,000 creditors.
Lumber Liquidators became LL Flooring after publicly rebranding in April 2020.