Richmond, VA, August 12, 2024 – “LL Flooring, formerly known as Lumber Liquidators, filed for Chapter 11 bankruptcy late Sunday night,” Yahoo Business reports.

“The specialty flooring company is beginning to restructure and also intends to seek a sale of the company. They say they are actively negotiating with multiple bidders and hope to obtain court approval in the coming weeks. The company says it will operate “generally in the normal course of business” during the Chapter 11 bankruptcy proceedings.

“LL Flooring has announced that the company will close 94 locations in 31 states nationwide.

“After extensive efforts to improve our liquidity position in a challenging macroeconomic environment, it was determined that initiating this Chapter 11 proceeding was the best path forward for the Company. Today’s move is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while we pursue a going concern sale of the remainder of the company. As we go through this process, we are committed to continuing to serve our valued customers and work seamlessly with our suppliers and partners. I am grateful to our employees for their continued hard work to provide the best experience for our customers,” said Charles Tyson, President and CEO of LL Flooring.

“LL Flooring says the company has experienced several macroeconomic and operational changes over the past year that have weighed on the business. This is, of course, due to inflation and rising labor costs, as well as a change in customer spending habits and the frequency of these investments.

“LL Flooring has received a commitment for equity financing of up to $130 million. This financing will ensure that the company can continue its normal operations.

“Court documents say the company has between $500 million and $1 billion in assets and owes between $100 million and $500 million to as many as 100,000 creditors.”

The Company intends to pay vendors and suppliers in full for goods and services provided on or after the filing date of the Chapter 11 proceeding on its normal terms and has sought court approval to do so.

According to the 8K filing, “On August 8, 2024, Thomas Sullivan, Jason Delves and Jill Witter (collectively, the “F9 Directors”) announced their respective resignations as members of the Board of Directors, effective immediately. These resignations were not the result of any disagreement with the Company or the Board of Directors with respect to any matter relating to the Company’s business, policies or practices, or any other matter.

“On August 11, 2024, following the resignation of the F9 directors, the Board reduced the size of the Board from 9 to 6 directors.

“On August 9, 2024, Robert L. Madore Jr. notified the Board of Directors that he was resigning from his position as Chief Financial Officer and Executive Vice President of Finance of LL Flooring, Inc., effective immediately, for good cause (as defined in Mr. Madore’s severance agreement). Mr. Madore’s resignation was not the result of any disagreement with the Company relating to the Company’s operations, policies or practices.

“On August 9, 2024, the Board of Directors appointed Susan Bryan as interim Chief Financial Officer of the Company, replacing Mr. Madore. Prior to her appointment as interim Chief Financial Officer, Ms. Bryan served as Vice President of Finance for the Company.

“In connection with Ms. Bryan’s appointment, the Board increased Ms. Bryan’s annual base salary to $375,000.”

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