LL Flooring, a well-known hardwood flooring retailer in the United States, has filed for Chapter 11 bankruptcy and is now actively seeking to sell its business. The filing is part of a carefully crafted strategic plan to reorganize finances and meet debt obligations in this difficult economic climate. Despite the bankruptcy proceedings, LL Flooring is continuing operations, and potential buyers have already shown plenty of interest.
The sale of the business plays a key role in the company’s path to financial recovery and stability. Discussions are ongoing with prospective buyers, with court approval for the sale being part of the bankruptcy proceedings. The company is optimistic that a resolution will be reached soon, ensuring the interests of creditors, preserving jobs, and guaranteeing continued service to customers.
In a significant step towards recovery, LL Flooring has secured $130 million in Debtor-in-Possession (DIP) financing from a consortium of banks led by Bank of America.
LL Flooring bankruptcy and sale plans
As part of this move, 94 retail outlets will be closed, impacting approximately 2,000 employees. This will allow the company to sharpen its focus on e-commerce, acknowledging the rise of online shopping trends.
Management intends to maintain business as usual for customers during this transition, with no service disruptions. During this challenging time, management has also assured shareholders that sound financial decisions and a long-term strategy will increase operational performance and revenues.
Reports show that LL Flooring’s estimated assets are between $500 million and $1 billion, while liabilities range between $100 million and $500 million. Major financial institutions and trade companies form the bulk of the creditors. To manage the increasing debt, the company implements efficiency measures, cost-cutting strategies, and continued negotiations with creditors for a possible settlement.
Last year, LL Flooring had considered strategic options to address its financial difficulties, with investment firm Live Ventures proposing a $180 million all-cash offer to buy them out. However, the final decision is currently pending as part of the ongoing bankruptcy proceedings.
