LL Flooring, previously known as Lumber Liquidators, has declared an impending closure with a liquidation plan submitted to the U.S. Securities and Exchange Commission. Its employees’ future is now in question. Once the plan is approved, the Virginia-based firm’s assets will be sold off to clear their debts.
Despite once being an industry leader in hardwood flooring, the company’s shift towards commercial and residential flooring couldn’t save it from financial distress. Although the final closure date is still unknown, the company plans to meet all financial obligations to its customers and suppliers throughout this transition.
All of the company’s over 300 stores will commence closing sales as part of the liquidation process.
LL Flooring’s closure plan signals job uncertainty
Ninety-four stores have already begun this process, and further stores will follow suit. Despite these closures, all stores will remain open, offering significant discounts on the remaining LL Flooring products until full liquidation.
A combination of lawsuits regarding formaldehyde-contaminated flooring and damage to endangered wildlife habitats coincide with its closure. Additionally, the Sandston distribution center was previously sold to a Delaware LLC for $104.75 million. Shareholders’ investments could be deemed unstable, given the failure to secure a deal to increase the asset value prior to announcing the liquidation plan to the bankruptcy court.
Hilco Merchant Resources has been assigned the task of managing the closure of the remaining stores, with clearance sales due to start from September 6th and estimated to conclude by November’s end. LL Flooring, struggling with reduced demand and U.S Customs’ restrictions on certain goods, has operated at a loss for seven continuous quarters, affecting its nationwide workforce of about 2,100 employees.
