new York
CNN
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LL Flooring, formerly known as Lumber Liquidators, has filed for bankruptcy and will close 94 of its stores across the United States.
The retailer will not liquidate immediately, however, as the company recently announced it has filed for Chapter 11 bankruptcy proceedings, which allows for reorganization rather than winding down the business. Instead, LL Flooring will use the proceedings to seek a sale of the 30-year-old company, which is in “active negotiations with multiple bidders,” according to a press release.
Major furniture retailers continue to struggle following the pandemic boom, especially as Americans grapple with persistent inflation. Additionally, expensive luxury items like furniture have quickly disappeared from the shopping lists of more price-conscious consumers.
This means it is much tougher for companies like LL Flooring.
“After extensive efforts to improve our liquidity position in a challenging macroeconomic environment, it was determined that initiating this Chapter 11 proceeding was the best path forward for the Company,” said CEO Charles Tyson.
He added that the process provides the company with “additional time and financial flexibility as we reduce our physical presence and close certain stores while pursuing a sale of the remainder of the business as a going concern.”
LL Flooring, which changed its name in 2021, has about 300 locations and sells 500 different types of hard flooring. The company has secured $130 million in equity to keep operations going and pay suppliers.
A list of closures is available on the website.
The fact that customers reduced their spending on non-essential items has hurt many retailers and even caused some to go out of business.
This led to furniture chains Z Gallerie and Mitchell Gold + Bob Williams filing for bankruptcy last year and Wayfair drastically reducing its workforce.
Conn’s HomePlus, a 134-year-old furniture and electronics retailer, recently filed for bankruptcy and is in the process of closing all of its stores. Just recently, Big Lots announced plans to close a quarter of its stores.
