National home improvement retailer LL Flooring has filed for bankruptcy in Delaware, burdened by approximately $109.6 million in funded debt. The company, known for its carpet, hardwood, and vinyl flooring products, announced plans to sell its business and downsize its operations as part of its Chapter 11 restructuring.
LL Flooring Files for Bankruptcy : Challenges Leading to Bankruptcy
In a first-day declaration accompanying LL Flooring Holdings Inc.’s bankruptcy petition, Chief Restructuring Officer Holly Etlin outlined the factors contributing to the company’s financial difficulties. These include decreased consumer spending, rising labor and supply costs, and the impact of U.S. tariffs and restrictions on imports from China. As part of its bankruptcy strategy, LL Flooring intends to close 94 of its 430 retail locations nationwide while seeking potential buyers to either acquire the business as a going concern or liquidate its assets.
Strategic Steps During Restructuring
“Today’s step is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while pursuing a going-concern sale of the rest of our business,” said Charles Tyson, President and CEO of LL Flooring, in a statement released Sunday.
