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Discount hardwood flooring retailer LL Flooring is closing more than 200 stores nationwide, including nine locations in New Jersey.
While the Virginia-based company filed for Chapter 11 bankruptcy last month and is pursuing a going-concern sale of its business, the proposed asset agreement does not include the chain’s entire retail footprint.
Under the terms of the deal announced Sept. 6, F9 Investments – a private equity firm run by Thomas Sullivan, LL Flooring’s founder and former CEO – would acquire 219 of the chain’s 430 stores. F9 Investments would also take on inventory, the company’s massive distribution center in Virginia and intellectual property rights.
Completion of the sale is expected by the end of September, subject to bankruptcy court approval.
The purchase would include the following New Jersey stores: East Brunswick, Fairfield, Hamilton, Hillsborough, South Hackensack and Toms River.
Meanwhile, LL continues to work with Hilco Merchant Resources on liquidation sales at 211 stores. It expects to wind down business at those locations within 12 weeks. That includes 117 stores where closings were recently initiated as well as 94 others that were already in the process when LL filed for bankruptcy.
Locally, stores will close in: Atlantic City, Cherry Hill, Manahawkin, Millville, Mount Holly, Oakhurst, Union, Woodbridge and Woodbury.
In the news
Just three days before disclosing the deal, LL announced it was launching a full-scale liquidation of all its assets after it was unable to find a buyer. That plan included closing all stores and initiating layoffs of its 2,000-person workforce.
Formerly known as Lumber Liquidators, LL Flooring specializes in discounted bamboo, cork, hardwood, laminate, tile and waterproof vinyl flooring. The 30-year-old chain has more than 400 locations across 47 states, as well as an e-commerce site.
The company faced turmoil following a 2015 investigative report by CBS’ “60 Minutes” that found the business was selling Chinese-made laminate flooring with unsafe levels of cancer-causing formaldehyde.
It later said it would stop selling the product and agreed to pay $36 million to settle two class-action lawsuits. The company also underwent a complete rebranding in 2022. 
Formerly known as Lumber Liquidators, LL Flooring specializes in discounted bamboo, cork, hardwood, laminate, tile and waterproof vinyl flooring. – PROVIDED BY LL FLOORING
Based in Miami Beach, Fla., F9 invests in companies involved in clean energy, direct to consumer retail, and commercial and industrial real estate. Its portfolio includes Cabinets To Go, Thos. Baker, Trashology, Dilon Technologies and Southwind Flooring.
In a statement, Charles Tyson, LL’s president and CEO, said, “We are pleased to have reached this agreement with F9 Investments for a going-concern sale following significant efforts by our team and advisors to preserve the business and maintain ongoing operations.”
“As we move through the court-supervised process toward the approval and completion of this transaction, we remain committed to continuing to serve our valued customers and working closely with our vendors and partners,” he said.
‘Back to basics’
Leading up to its bankruptcy petition, LL Flooring said it spent “several months” trying to resolve liquidity concerns and refinance debt obligations. In court documents, the company attributed its business hardships to reduced consumer spending on home improvement, decreased discretionary buying and falling demand in the sector after the height of the pandemic.
At the time of its filing, LL Flooring reported liabilities of $100 million to $500 million, assets of $500 million to $1 billion and debtor-in-possession financing of $130 million from its lenders. It also said it planned to close 94 stores as part of a reorganization.
Sullivan, who left the company in 2016, told The Associated Press that the stores set for purchase by F9 will open under the Lumber Liquidators name again.
“We’ll be getting back to basics … We know what worked before. It’s not fancy offices in Richmond with 200 people that didn’t know the flooring business. It’s great people in our stores that know flooring (and) customers that want a great deal and know Lumber Liquidators is the place to go,” he said.
Sullivan also explained that the company plans to narrow down to a more “manageable” selection of flooring options, eliminating material that feels duplicative or doesn’t sell well. He also expects it will align closely with Cabinets To Go to help with shipping efficiency.
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Publish date : 2024-09-09 07:20:00
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