LL Flooring, formerly known as Lumber Liquidators, filed for Chapter 11 bankruptcy late Sunday night and announced it will close 94 of its more than 300 stores nationwide.
“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. “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.
The California locations slated for closure are in Bakersfield, Burlingame, Elk Grove, Fairfield, Fresno, Rancho Cucamonga, Salinas, San Diego, Santee, Torrance and Visalia.
LL Flooring says that over the past year, the company 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.
According to a press release, LL Flooring has received a “commitment for debtor-in-possession (“DIP”) financing” of up to $130 million. The company says the money will support its 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 has assets of $500 million to $1 billion and owes $100 million to $500 million to up to 100,000 creditors.
Lumber Liquidators became LL Flooring after publicly rebranding in April 2020.