LL Flooring Files Bankruptcy Intending to Sell Retail Stores

(Bloomberg) -- LL Flooring Holdings Inc., formerly called Lumber Liquidators, has filed Chapter 11 to close several stores while attempting to sell its remaining locations.

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The flooring retailer sought court protection Sunday in Delaware, carrying nearly $110 million in long-term debt. The company said it faced a series of challenges following the Covid-19 pandemic, including a drop in home sales and rising interest rates, which have contributed to a decline in consumer spending on home-improvement projects.

The company said it has been marketing its business to potential buyers for more than a year. In Chapter 11, LL Flooring said it will seek bids to sell the business and keep its stores operating but will also solicit offers to close its locations if the company isn’t able to find a “viable buyer.”

LL Flooring is planning to close 94 locations at the start of bankruptcy. The company said those shops will continue serving customers throughout the closing process. The retailer has 300 other locations that will also remain open and will continue operating normally.

The retail chain has lined up $130 million in Chapter 11 financing to fund its operations during the bankruptcy. The financing is being provided by a group of its existing bank lenders led by Bank of America, LL Flooring said.

The business was founded in 1994 as Lumber Liquidators Holdings Inc. but changed its corporate name to LL Flooring Holdings Inc. in 2022, according to court documents.

The case is LL Flooring Holdings Inc., number 24-11680, in the US Bankruptcy Court in the District of Delaware.

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