LL Flooring, the company formerly known as Lumber Liquidators, is closing 94 stores after filing for bankruptcy.
The Richmond, Virginia-based company announced Sunday it had entered Chapter 11 reorganization proceedings in Delaware bankruptcy court with the hope of selling the business in the next few weeks, as it says it's in "active negotiations with multiple bidders."
And thanks to more than $130 million in debtor-in-possession financing, LL Flooring will be able to keep open more than 300 stores and its online platform during the Chapter 11 process, with the select 94 stores holding closing sales. The 30-year-old company said it didn't plan to close additional stores through the reorganization but would continue to evaluate its footprint "as appropriate."
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"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," Charles Tyson, president and CEO of LL Flooring, said in a statement. "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."
LL Flooring is now the latest retailer to shutter as inflation-weary consumers have pulled back on big-ticket purchases, including homes. And with fewer home purchases, fewer people are itching to spend on renovation projects, like redoing their flooring, leaving LL Flooring with slowed sales and less revenue.
Other companies that have taken a hit in recent months include Big Lots, which also announced this month it would be closing more than 300 locations in the U.S. after warning it could be closing for good overall. Earlier this year, 99 Cents Only Stores announced it would be liquidating and closing all of its locations, and Conn's HomePlus is closing all of its stores after recently filing for bankruptcy.
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Express, rue21, Z Gallerie, Red Lobster, Rite Aid, CVS, Walgreens, Family Dollar and Best Buy are among the slew of other retailers that have either announced bankruptcy filings or store closures in recent times.
But beyond market pressure, LL Flooring has been subject to a number of controversies in the last decade.
In 2015, a "60 Minutes" report uncovered unsafe levels of formaldehyde in LL Flooring's Chinese-made laminate flooring, which led to its stock losing almost half its value and numerous customer class-action lawsuits. And in the same year, it pleaded guilty in federal court to illegally importing hardwood flooring, and was ordered to pay $13.15 million in penalties.
LL Flooring customers will now only have until Sept. 3 to use gift cards at the remaining stores. To check if your location is on the list of closures, click here.
