LL Flooring Is Closing 94 Stores After Filing for Bankruptcy

LL Flooring will close 94 stores in more than 30 states after filing for bankruptcy this week.

The company, formerly known as Lumber Liquidators, filed paperwork in Delaware bankruptcy court, revealing it is nearly $110 million in debt. In a post to investors, the company explained the reason behind the filing.

“LL Flooring is generally operating in the normal course through this process and remains focused on providing customers with a broad range of hard and soft surface flooring and an exceptional shopping experience. The Company has more than 300 continuing stores across the U.S. that, along with its online platform, are open and continuing to serve customers with few changes to store operations and policies,” the statement began.

“In addition, LL Flooring entered into an agreement with Hilco Merchant Resources, LLC, to assist the Company in its recently initiated store closing sales at 94 of its locations. Those 94 stores will remain open and serving customers through this closing process,” it continued.

LL Flooring files bankruptcy,
will close 94 stores. Here's where they are. https://t.co/yqYoyIMd4g

— USA TODAY (@USATODAY) August 13, 2024

Charles Tyson, president and chief executive officer of LL Flooring, said, “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. 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.”

Tyson believes that as the company proceeds forward, it will remain “committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners.” He added, “I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”

According to USA Today, LL Flooring will stop accepting all gift cards at all locations on Sept. 4 — even those that aren’t closing down. These cards cannot be exchanged for cash. In the filings, the company noted that it currently has around $131 million in outstanding gift cards.

LL Flooring has received a commitment for debtor-in-possession financing of up to $130 million from its existing bank group, led by Bank of America. It is also “engaged in discussions with potential buyers of the company,” according to a letter it shared with its customers.