LL Flooring, a specialty retailer of hard-surface flooring, has filed for bankruptcy and is looking to sell its business after facing significant liquidity issues. The company has commenced the winding down of 94 underperforming stores, with closures expected by September. Store closing sales are already underway, and LL Flooring may pursue additional closures.
According to the company, a "challenging macroeconomic environment" post-COVID-19 pandemic has been a key factor in its struggles. During the pandemic, the U.S. housing market saw a surge as consumers invested in home improvements. However, the subsequent decline in existing home sales, high interest rates, and inflation have severely impacted demand for flooring products.
Charles Tyson, president and CEO of LL Flooring, stated that the Chapter 11 filing is intended to provide the company with additional time and financial flexibility to reduce its physical footprint while pursuing a sale of its business. The Bankruptcy Court is expected to approve the sale within the first few weeks of the proceedings.