Richmond, Virginia-based LL Flooring, the former Lumber Liquidators, which filed for Chapter 11 bankruptcy reorganization last month has pivoted to full liquidation and will close all stores.
That includes stores in Woodbridge, Chantilly, Manassas and Leesburg, Virginia, and stores in Beltsville and Rockville, Maryland. Previously, only the Woodbridge store had been selected for closing as part of the company’s reorganization.
“Despite the company’s extensive efforts and negotiations with multiple bidders to pursue a going concern sale of the company, and the extension of the original deadline to reach a Stalking Horse Agreement, the company was unable to reach (and agreement) that, in the company’s business judgment and in consultation with key stakeholders, would maximize the value of the company’s assets for the benefit of its stakeholders,” LL Flooring said in a securities filing.
LL Flooring had originally planned to close 94 stores as part of a reorganization. Liquidation means it will now close its remaining 200 stores. Sales at those stores have already begun. The company expects the wind-down of its operations to take about 12 weeks.
The liquidation affects about 2,000 employees.
LL Flooring was founded as Lumber Liquidators 30 years ago, selling discounted hardwood flooring and other flooring products. It changed its name to LL Flooring in 2022.
The company was subject of a 60 Minutes investigation in 2014 that said the company was selling Chinese-made Laminate flooring with high levels of cancer-causing formaldehyde, which led to criminal charges filed by the U.S. government and several class-action lawsuits.
LL Flooring had $189 million in first quarter sales, down 21.7% from a year earlier. It posted a $29 million first quarter loss.
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