LL Flooring Holdings Inc. (NYSE: LL), the Richmond, Virginia-based hard-surface flooring retailer, announced the closure of 94 locations as part of a Chapter 11 bankruptcy reorganization.
The company, which has more than 300 stores across the country along with its online platform, has contracted Hilco Merchant Resources LLC to assist the store closing sales at the 94 targeted locations, which will remain open and serving customers through this closing process. LL Flooring said it would continue normal operations while continuing with the going-concern sale of its business under the Bankruptcy Code, adding that was in discussions with multiple bidders.
“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,” said President and CEO Charles Tyson. “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. 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. I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
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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