LL Flooring to Close After Failed Sale – LL Flooring, formerly known as Lumber Liquidators, has announced plans to liquidate after failing to find a buyer during its Chapter 11 bankruptcy process.
The company, which operates over 200 stores across the United States, filed for bankruptcy three weeks ago. The decision to liquidate marks a significant turn in the company’s journey, highlighting the challenges it faced in recent years.
Company Statistics
LL Flooring Holdings has a market capitalization of $611,505 and an enterprise value of $237.39 million. The company has 30.58 million shares outstanding, with a slight increase of 0.34% over the past year. However, the stock price has dramatically decreased by 99.43% in the last 52 weeks. The company’s financial health shows concerning signs, with a debt of $242.75 million against only $5.97 million in cash. These numbers illustrate the financial struggles LL Flooring has endured.
Store Closings and Liquidation Plans
On Wednesday, LL Flooring stated it could not secure a financing-backed offer for a sale. Consequently, the company decided to wind down operations and sell off its assets. Store closing sales will start on Friday, September 6. The company plans to liquidate its inventory, which may attract bargain hunters looking for flooring solutions. While LL Flooring will continue to fulfill existing flooring installation appointments for 30 days, it will stop scheduling new ones after this date.
Impact on Customers
Customers can still use their store credits, but the last day for order cancellations is Thursday, September 5. All sales from September 6 onward will be final.
This policy may lead to some confusion among customers, as they hurry to make purchases before the final closure. Store closure timelines will vary, with some locations expected to shut down within 12 weeks. Customers should be aware that availability may be limited as the liquidation process unfolds.
LL Flooring to Close After Failed Sale – A Troubled History
LL Flooring’s bankruptcy marks the end of a challenging chapter for the company. Once a significant player in the home improvement industry, LL Flooring faced accusations in 2016 of selling flooring with high levels of formaldehyde. This scandal led to a decline in sales and damage to consumer trust. The company had been actively pursuing a sale as part of its bankruptcy reorganization but was unable to overcome the ongoing legal and reputational challenges.
Company Leadership’s Perspective
Despite the negative turn, LL Flooring leadership remains focused on fulfilling existing obligations. CEO Chip Brewer has expressed commitment to completing current flooring installation appointments and ensuring customers are served during the transition. However, this commitment may not be enough to salvage the company’s reputation.
LL Flooring to Close After Failed Sale – The End!
The company’s liquidation signifies the struggles faced by LL Flooring in recent years. Despite efforts to sell the business and recover from past controversies, it is now set to close its doors for good. As the liquidation process begins, the home improvement market will reflect on LL Flooring’s rise and fall. This closure leaves a gap in the market, as consumers look for alternative flooring solutions amid the shifting landscape of home improvement retailers.
Charts by Trading View
