The retailer LL Flooring is shutting down its stores after failing to secure a buyer after it filed for bankruptcy last month.
In an online statement, LL Flooring’s leadership announced that it “has been working hard to pursue a going-concern sale of the company and has actively negotiated with multiple bidders. These discussions have not resulted in an offer, with the necessary financing, that would maximize the value of LL Flooring. Under Chapter 11 rules, the company is required to achieve the highest or otherwise best offer for the company’s business or assets and, in this case, it was determined that a sale of the company’s individual assets, holding closing sales at our stores and winding down the business will deliver the most value to its creditors. On behalf of all of us, thank you for your support and business.”
The company began the summer with 442 stores in 47 states but announced the closure of 94 units last month as its financial state frayed dramatically. The closure process is expected to take 12 weeks to complete, with 2,000 employees losing their jobs.
The company, which started as Lumber Liquidators, celebrated its 30th anniversary in business earlier this year. It 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 and changed its name to LL Flooring to move beyond the controversy.
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