LL Flooring closes three New Jersey stores due to bankruptcy filing
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Which well-known retail stores have filed for bankruptcy?
Red Lobster, Walgreens, Rite Aid and many other retailers are struggling with deteriorating financial conditions.
Three LL Flooring stores in New Jersey are closing — in addition to 94 stores in 30 states that the chain will close over the next two months — as the company files for bankruptcy.
The company, formerly known as Lumber Liquidators, said in a filing Sunday in Delaware Bankruptcy Court that it had nearly $110 million in long-term debt.
The Richmond, Virginia-based company said in filings that declining home sales and rising interest rates contributed to declining sales in the home improvement market. The company’s 300 other stores will remain open, including North Jersey locations in South Hackensack and Fairfield.
LL Flooring announced that as part of the bankruptcy proceedings, it will stop accepting gift cards at any of its stores, including those that are not closing, on Sept. 4, and that gift cards cannot be exchanged for cash. The company said in the filing that it has about $131 million worth of gift cards outstanding.
Orders placed before August 11 must be picked up no later than September 11, according to a letter to customers obtained by NorthJersey.com.
According to the documents, LL Flooring has tried to find a buyer but is willing to seek offers to close additional stores if no buyer is found.
“The Company is in discussions with potential buyers of the Company and this process will allow us to evaluate binding offers in a court-supervised process to maximize value for all of our stakeholders,” LL Flooring wrote in a letter to its customers. “While this could change, the Company currently expects to complete the sale of the Company by the end of September if a buyer is found.”
The company said it had received $130 million in a Chapter 11 financing process, with the funds provided by existing lenders, most notably Bank of America.
Which locations in New Jersey are closing?
There are 15 LL Flooring locations in New Jersey, and three of them will be closing. A spokesperson for LL Flooring declined to provide an exact closing date after the two-month notice has passed.
- 531 High St., Mount Holly
- 507 King Georges Road, Woodbridge
- 1450 Clements Bridge Road, Woodbury
What happens after filing for bankruptcy?
Insolvency does not necessarily mean the end of a company.
“A debtor in Chapter 11 proceedings typically proposes a restructuring plan to keep its business alive and pay its creditors over time,” the U.S. courts website states.
“Some companies do not survive Chapter 11, but many others, including household names like Marvel Entertainment and General Motors, emerge successfully and thrive,” CFO Magazine added in a 2020 article.
At the beginning of the year, fashion retailers Express and Joann Fabrics were able to survive their bankruptcy without any damage to the company.
NJ Bankruptcy Closings
Unionized Bed Bath & Beyond filed for bankruptcy in April 2023 and closed hundreds of stores across the U.S., including 13 in New Jersey. Last summer, Overstock.com bought the bankrupt retailer’s assets and relaunched BB&B as an online-only presence at bedbathandbeyond.com.
Rite Aid filed for bankruptcy in October and has since closed 40 stores in New Jersey. Red Lobster filed for bankruptcy in May as it sought a buyer. Big Lots filed for bankruptcy and announced plans to close hundreds of stores.
This article contains information from USA Today
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
E-mail: [email protected]; Twitter:@danielmunoz100 and Facebook
