LL Flooring Shutting Down All Stores

LL Flooring, formerly Lumber Liquidators, is shutting down all its stores after filing for bankruptcy.

At a Glance

LL Flooring, formerly known as Lumber Liquidators, is closing all its stores after failing to find a buyer.
The company filed for Chapter 11 bankruptcy protection last month.
Approximately 1,970 employees will lose their jobs.
Store closures are expected to be completed over the next 12 weeks.

Background of LL Flooring

Founded in 1993 by Tom Sullivan, LL Flooring grew expansively from a small operation to a nationwide store. The company, initially named Lumber Liquidators, offered various types of flooring to customers across the country. However, in early 2022, the company rebranded itself as LL Flooring. Despite its efforts to revitalize its image and reach, the company struggled with various setbacks over the years.

Turbulent Financial Waters

LL Flooring’s financial troubles came to a head last month when they filed for Chapter 11 bankruptcy protection. The filing cited debts of over $416 million against assets of just over $501 million as of July 31. Despite actively negotiating with multiple bidders, the company failed to secure a viable offer to keep it afloat. Consequently, the company decided to liquidate its assets to maximize value for its creditors.

Net sales had been falling steadily, dropping 18.5% in 2023 alone. Reports of impending bankruptcy had been ongoing since July, caused by reduced consumer spending on home renovations amid high interest rates and inflation. The company’s stock plummeted sharply, dropping from 84 cents to 2 cents since the Chapter 11 filing.

LL Flooring — once known as Lumber Liquidators — closing all of its over 400 stores after bankruptcy filing https://t.co/GMRYYf5Zcd pic.twitter.com/SDflWFGMVJ

— New York Post (@nypost) September 6, 2024

Litigations and Settlements

The story of LL Flooring is also marked by significant legal battles. The company faced multiple litigations, starting with a 2015 “60 Minutes” report that alleged their laminate flooring imported from China had dangerous levels of formaldehyde. This led to a series of class-action lawsuits, which LL Flooring settled by agreeing to pay $36 million in 2017. The company also paid $33 million in 2019 to settle federal charges regarding the safety of its laminate flooring.

Besides these lawsuits, in 2015, the company pleaded guilty to the illegal importation of hardwood flooring and faced $13.15 million in penalties.

Closure and Employee Impact

LL Flooring has begun winding down its operations. Store closures will start immediately, with all remaining locations holding closing sales beginning this week. The complete closure of approximately 300 stores is expected within the next 12 weeks. Nearly 1,970 employees, most of them full-time, will lose their jobs as a result of the liquidation.

“This is not the outcome that any of us had hoped for,” CEO Charles Tyson wrote in a letter to customers. “As we begin to wind down operations and close our stores, we are committed to doing so as smoothly as possible to minimize the impact on you, our associates and the communities we serve.”

Charles Tyson spoke candidly about the struggles the company faced to avoid closure. He mentioned that LL Flooring had been working hard to pursue a going-concern sale of the company. Unfortunately, they weren’t able to secure a relevant offer with the necessary financing, ultimately deciding to liquidate to benefit the creditors.

Customer Orders and Final Notes

For customers, LL Flooring has committed to fulfilling existing orders within 30 days but will not be offering new installations after September 6. Orders and deposits made before September 6 are final and non-refundable. This closure marks the end of an era for the company that once promised affordability and quality in flooring options nationwide. Customers, employees, and communities affected by this closure will have to adapt to this new reality.