LL Flooring, formerly known as Lumber Liquidators, has decided not to close all of its stores after all, following a last-minute buyer stepping in. The company has inked a deal with private equity firm F9 Investments for the sale of its business, which includes 219 stores, a distribution center in Virginia, intellectual property, and other assets. While 211 LL Flooring stores will still be closing, with 117 locations already in the process, and another 94 shutting down as part of the Chapter 11 bankruptcy proceedings.
The initial plan to wind down operations and close all stores changed after reaching an agreement with F9. LL Flooring’s President and CEO, Charles Tyson, expressed satisfaction with the deal, stating that the company aims to continue serving customers and vendors as the transaction goes through bankruptcy court for approval. F9 Investments, based in Miami and owned by Tom Sullivan, the founder of Lumber Liquidators, plans to revive the 219 stores under the Lumber Liquidators brand.
Sullivan emphasized a return to the basics, focusing on a more manageable selection of flooring options and streamlining operations. The company intends to offer significant discounts on leftover inventory from LL Flooring’s bankruptcy process. Sullivan also mentioned plans for increased efficiency by aligning with Cabinets To Go, another brand owned by F9. Lumber Liquidators, established in 1993, officially rebranded as LL Flooring at the beginning of 2022.
The company faced challenges in recent years, with decreasing sales and difficulties turning a profit. Various factors, including reduced foot traffic and high housing costs, contributed to a drop in net sales in 2023. Before filing for bankruptcy, LL Flooring engaged in a proxy battle, attempting to keep Sullivan off the board, though he and F9’s nominees were ultimately elected to the board in July. Despite hurdles, LL Flooring looks toward potential revitalization under new ownership and strategic direction.
