A prominent home improvement retailer with more than 400 stores across 47 states is reportedly considering a bankruptcy filing.
According to a Bloomberg report sourced from unnamed sources, LL Flooring Holdings (NYSE:LL) – the Richmond, Virginia-based company previously known as Lumber Liquidators – could file for bankruptcy in the coming weeks. The company’s net sales have dropped this year by 21.7% to $188.5 million while its shares plummeted by 53.5% to 60 cents over the past week.
LL Flooring is attempting to strengthen its cash savings by selling one of its Virginia-based distribution centers. Bloomberg’s coverage stated the company is in discussions with banks to modify its credit agreement in order to avoid violating a minimum liquidity rule within the agreement.
The company, which is now celebrating its 30th anniversary in business, received negative publicity when a “60 Minutes” episode in 2015 uncovered found large amounts of the carcinogenic formaldehyde in the supplier’s Chinese-sourced flooring. The company agreed to pay regulators $33 million in 2019 to settle federal safety charges.
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