The closure of stores for the former Lumber Liquidators will commence on September 6 and is expected to be completed in approximately 12 weeks.
LL Flooring, based in Virginia and specializing in hard-surface flooring, has chosen to liquidate its businesses after failing to secure a buyer during bankruptcy proceedings. The company filed for Chapter 11 bankruptcy on August 11 in an attempt to sell its assets to a buyer while maintaining its operations. Despite negotiating with multiple bidders, LL Flooring was unable to secure an offer that would maximize its value.
As a result, the company will sell off individual assets, conduct closing sales in stores, and wind down its operations to benefit its creditors. The store closure process is set to begin on September 6, 2024, with the completion expected in approximately 12 weeks.
Formerly known as Lumber Liquidators, the company operates around 430 retail stores across 46 states in the US. It had already started closing down 94 underperforming stores prior to filing for bankruptcy, with these outlets scheduled to be vacated by September.
In a court filing, Chief Restructuring Officer Holly Etlin mentioned that the company had faced numerous setbacks in recent years, affecting its liquidity. Following a decline in the home improvement market post the pandemic-induced housing boom, LL Flooring experienced a decrease in transaction volume and average order size. This led to the decision to file for bankruptcy due to unresolved liquidity issues.
The bankruptcy petition states that the company has between 50,001 to 100,000 creditors, with estimated assets ranging from $500 million to $1 billion and liabilities between $100 million and $500 million.
LL Flooring joins a growing list of furniture sector firms that have filed for bankruptcy in the past year, including Z Gallerie and Conn’s Inc. The overall corporate bankruptcy filings across all sectors have been on the rise, with 392 filings in the first seven months of the year, the highest since 2020.
As interest rates remain high and geopolitical uncertainty persists, the number of corporate reorganizations is increasing. The consumer discretionary sector has seen the highest number of bankruptcy filings, followed by other sectors like industrials, healthcare, and information technology.
The American Bankruptcy Institute reported an 8% annual increase in commercial filings in August, indicating a steady rise in bankruptcy filings. As economic challenges continue, it is expected that new filing volumes will increase in the coming months. Please rewrite the following sentence: “The dog ran quickly across the street.”
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