LL Flooring, previously known as Lumber Liquidators, will close all its stores and has begun liquidation sales after failing to find a buyer for the business.
The retailer, which has been in operation since 1994, filed for Chapter 11 bankruptcy protection on Aug. 11. The company announced plans to close 94 of its 300 stores immediately but had hoped to find a buyer for the remainder of the business. LL Flooring said it held negotiations with multiple bidders over the past month, but none of those discussions led to a viable offer.
“Based on the bids received to date and considering the value of those bids as well as the lack of financing, it was determined that a sale of the company’s individual assets, holding closing sales at our stores and winding down the business, will deliver the most value to our creditors,” said Charles Tyson, CEO of LL Holdings in a statement.
Closing sales already have begun at the 94 stores designated for closure back in August. Sales will now begin at the remainder of the chain’s stores and are expected to last approximately 12 weeks.
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The company’s website will remain open and operational throughout the liquidation period. LL Flooring also promised that all previously placed installation orders will be completed within the next 30 days, but no new installations will be scheduled. Vendor and supplier payments will continue as scheduled under the terms provided following the company’s August bankruptcy filing. CBS News estimates that the store closures will result in the loss of approximately 2,000 jobs.
Lumber Liquidators was once the largest specialty vendor of hardwood flooring in North America, but the business took a downturn after a 2015 60 Minutes report revealed that the company’s flooring had dangerous levels of formaldehyde. In 2019, LL Flooring agreed to pay $33 million in fines for misleading investors about levels of the chemical in its products.
