LL Flooring, the flooring retailer formerly known as Lumber Liquidators, has filed for Chapter 11 bankruptcy protection and will close about a quarter of its locations nationwide, the company announced Sunday.
Eleven of the 94 locations marked for closure are in California, including stores in Torrance, Rancho Cucamonga and Fresno. The company said stores being shuttered will remain open throughout the closing process.
A major retailer in home improvement, LL Flooring offers customers a wide range of flooring products and advertises a seamless shopping experience and expert guidance. The company was founded in 1993 as Lumber Liquidators Holdings Inc. but changed its name in 2022.
In an open letter to customers, LL Flooring said it is seeking a buyer for its remaining stores and anticipates a sale of the business will be completed by the end of September. The company said it has been marketing its business to potential buyers for more than a year.
About 300 locations across the country and LL Flooring’s online platform will remain open as the company continues to search for a buyer.
The retailer, which is carrying nearly $110 million in long-term debt, said consumer spending on home improvement projects declined during the COVID-19 pandemic as home sales dropped and interest rates rose.
“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,” Chief Executive and President Charles Tyson said.
“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,” he said.
The company has received $130 million in financing from a group of existing bank lenders led by Bank of America, which it will use to fund its operations during bankruptcy.
Bloomberg contributed to this report