LL Flooring, the hardwood flooring retailer formerly known as Lumber Liquidators, will still close hundreds of stores despite finding a last-minute buyer following a bankruptcy filing.
Less than a month after filing for Chapter 11 bankruptcy protection, the Virginia-based company says it is now “winding down operations." Friday afternoon, it secured a last-minute buyer, with private equity firm F9 Investments set to acquire 219 stores and a distribution center.
While the deal means all LL Flooring stores won't close, some 211 will. That includes 117 locations where closing was recently initiated and 94 others that were already in the process when the company filed for Chapter 11 bankruptcy protection Aug. 11.
LL Flooring started the closing process last week, with closing sales at hundreds of stores on Friday. The retailer says store closures should be completed over the next 12 weeks, with timing varying by location.
“This is not the outcome that any of us had hoped for,” LL Flooring CEO Charles Tyson wrote in a letter to customers before the sale. “As we begin to wind down operations and close our stores, we are committed to doing so as smoothly as possible to minimize the impact on you, our associates and the communities we serve.”
But that changed after a deal was reached with F9 on Friday. In an updated statement, Tyson said that the company was “pleased to have reached this agreement” with F9 “following significant efforts by our team and advisors to preserve the business.”
Tyson added that LL Flooring remains “committed to continuing to serve” customers and vendors as the transaction moves through bankruptcy court for approval.
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F9, based in Miami, is owned by Tom Sullivan, who founded Lumber Liquidators over 30 years ago. Sullivan told The Associated Press that the 219 stores set to be purchased by F9 will open under the Lumber Liquidators name again.
“We’ll be getting back to basics,” Sullivan said. “Basically, yellow and black is coming back ... 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.”
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What is LL Flooring?
LL Flooring’s history dates back more than 30 years. The brick-and-mortar retailer, founded by Tom Sullivan, got its start in 1993 as a modest operation in Massachusetts, later expanding operations nationwide.
Known for decades as Lumber Liquidators, the company officially changed its name to LL Flooring at the start of 2022 — in a move following years of turmoil. The retailer faced expansive litigation after a 2015 segment of “60 Minutes” reported that laminate flooring it was selling had illegal and dangerous levels of formaldehyde. Lumber Liquidators later said it would stop selling the product, which was manufactured in China, and agreed to pay $36 million to settle two class-action lawsuits in 2017.
LL Flooring saw difficulty turning a profit over more recent years, with the company reporting loss after loss. Net sales fell 18.5% in 2023, according to a recent earnings report, amid declines in foot traffic and weak demand. In its Chapter 11 filing, LL Flooring disclosed that total debts amounted to more than $416 million as of July 31, compared to assets of just over $501 million.
Ahead of filing for bankruptcy, LL Flooring also saw a proxy battle earlier in the summer — centered around attempts to keep Sullivan off the board. In June, company leadership wrote a letter urging shareholders to vote for other nominees, accusing Sullivan of “pushing a personal agenda.” But LL Flooring later confirmed that the founder and his proposed nominees were elected at its annual shareholder meeting in July.
List of stores closing
Nearly 300 LL Flooring stores are expected to close over the next 12 months, with closing sales currently slated for 94 stores.
More than 200 stores remain open, a message on the company's website said.
"LL Flooring is open for business," the message said. "The stores below are closing soon, but you can still shop online or click here to see over 200 stores open and ready to serve you."
The following stores in Illinois are set to close soon, with closing sales underway, according to LL Flooring:
- Bloomington - 1701 E. Empire St.
- Champaign - 301 W. Marketview Dr.
- Crystal Lake - 4500 W. Northwest Hwy
- East Peoria - 1467 N. Main St.
- Fairview Heights - 5520 N. Illinois St.
- Geneva - 1530 S. Randall Rd.
- Lombard - 543 E. Roosevelt Rd.
- Mundelein - 3080 W. Route 60
- Naperville - 2603 Aurora Ave.
- Rockford - 3290 S. Alpine Rd.
- South Elgin - 356 Randall Rd.
A full list of stores closing across the country can be found here.
