LL Flooring Files for Bankruptcy, Announces Closure of 94 Stores

LL Flooring, previously known as Lumber Liquidators, has filed for bankruptcy and announced plans to close 94 of its stores across the United States. The flooring retailer, which has been in business for 30 years, entered Chapter 11 bankruptcy, a move that allows for the reorganization of its operations rather than an immediate liquidation.

The company is actively seeking a sale and is currently in negotiations with multiple potential buyers, according to a recent press release. Despite the closures, LL Flooring is not shutting down entirely and will continue its efforts to secure the future of its remaining operations.

The bankruptcy filing comes as major furniture and home improvement retailers continue to struggle in the wake of the pandemic boom, with persistent inflation and tighter consumer budgets significantly impacting sales. High-ticket items like flooring and furniture have fallen out of favor with budget-conscious shoppers, making it increasingly difficult for companies like LL Flooring to maintain profitability.

“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,” said Charles Tyson, CEO of LL Flooring. He emphasized that the bankruptcy process will provide the company with “additional time and financial flexibility” as it reduces its physical footprint and pursues the sale of the business.

LL Flooring, which rebranded in 2021, operates approximately 300 locations and offers over 500 varieties of hard-surface flooring. The company has secured $130 million in debtor-in-possession financing to continue its operations and pay vendors during the bankruptcy process.

The retailer’s struggles are part of a broader trend in the industry, where reduced consumer spending on non-essential items has led to several high-profile bankruptcies. Furniture chains like Z Gallerie and Mitchell Gold + Bob Williams have filed for bankruptcy in the past year, and others, such as Wayfair, have significantly cut their workforce. Conn’s HomePlus, a 134-year-old retailer, is also in the process of closing all its stores following its bankruptcy filing, while Big Lots recently announced plans to shutter a quarter of its locations.

A list of the 94 LL Flooring stores slated for closure is available on the company’s website.