LL Flooring, previously known as Lumber Liquidators, is now closing its doors after declaring bankruptcy. Despite efforts to find a buyer during recent negotiations, the Virginia-based hardwood flooring retailer was unsuccessful, leading to the decision to wind down operations. The process of closing all remaining stores is expected to begin this week, with closing sales set to start at hundreds of locations on Friday. Store closures are projected to be completed over the next 12 weeks, with the timeline varying by store.
In a letter to customers, LL Flooring CEO Charles Tyson expressed disappointment in the outcome, emphasizing the commitment to a smooth winding down process to minimize the impact on customers, employees, and communities. The company, which boasted over 400 stores earlier this year, had already initiated closing sales at 94 stores following the Chapter 11 filing but will now be closing down all remaining locations.
As a result of the closures, numerous employees are facing job loss. Court documents revealed that as of the bankruptcy petition date in August, LL Flooring had approximately 1,970 employees, primarily working full time across various roles in the U.S., including retail, corporate, and distribution positions. LL Flooring, founded by Tom Sullivan over 30 years ago, started as a small operation in Massachusetts in 1993 before expanding nationwide.
Previously known as Lumber Liquidators, the company rebranded as LL Flooring at the beginning of 2022 after facing significant challenges. Legal issues arose following a 2015 report by “60 Minutes” about formaldehyde levels in its laminate flooring, leading to litigation and a $36 million settlement in 2017. The company struggled financially in recent years, experiencing consecutive losses. According to a recent earnings report, net sales dropped by 18.5% in 2023 due to decreased foot traffic and weak demand.
LL Flooring’s Chapter 11 filing disclosed total debts exceeding $416 million as of July 31, contrasting with assets slightly exceeding $501 million. Prior to the bankruptcy filing, a proxy battle ensued, focusing on efforts to prevent Sullivan from being part of the board. Despite initial resistance from company leadership, Sullivan and his proposed nominees were elected during the annual shareholder meeting in July.
