LL Flooring Holdings, Inc. on Sunday filed for Chapter 11 bankruptcy protection in Delaware as looks for a buyer.
The publicly traded comapny stated that it plans to keep locations and its online operation open during the process. The company has announced plans to close more than 90 stores, -none in Delaware. The company sells flooring direct to the public and offers installation service with outside contractors.
The Virginia-based company, formerly Lumber Liquidators, has been dealing with a downturn in the home improvement industry and liquidity issues. Company stock was trading at 84 cents a shae
The Company has more than 300 stores across the U.S. including four in Delaware - one in Claymont, another in the Newark area and downstate locations in Delmar and Dover.
LL Flooring hired Hilco Merchant Resources, LLC, to assist in its store closing sales at 94 of its locations. Those stores will remain open during the closing process.
The company remains in active negotiations with multiple bidders and hopes to seek Bankruptcy Court approval of a sale of its business in the first few weeks of the Chapter 11 proceedings, a release stated.
LL Flooring has received a commitment for debtor-in-possession (“DIP”) financing of up to $130 million from its existing bank group led by Bank of America.
Charles Tyson, CEO of LL Flooring, said, “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. 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. As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners. I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
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