WFCN —
Now, a large home improvement company can shut down all of its locations if it files for bankruptcy and can’t pay its bills.
A bankruptcy filing is being considered by LL Flooring, which was once known as Lumber Liquidators and changed its name in 2020.
From humble origins selling from a pick-up truck in Stoughton, Massachusetts, roughly 22 miles south of Boston, the company has grown to 442 stores throughout 47 states, as reported by the Daily Mail.
According to the source, in 2014, founder Tom Sullivan remarked, “To look back and see how far we’ve come in 20 years is almost like a dream” when discussing the company’s progress.
We revolutionized the sale of hardwood flooring and grew from a small business to service over two million individuals.
No one can equal the value and quality of our floors, and our customers know it.
According to Bloomberg‘s initial sources, LL Flooring is reportedly exploring Chapter 11 bankruptcy.
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According to those in the know, the firm might file in the next several weeks.
It can reorganize its foundation without fear of creditors if it files.
Chapter 7 bankruptcy, on the other hand, will force the business to sell off its assets and maybe even close some of its locations.
According to Bloomberg, Houlihan Lokey, LL Flooring’s business adviser, has approached potential investors about funding a revamped version of the brand.
Shares of the firm dropped 53.5% to 60 cents when the bankruptcy rumors were revealed, as reported by the New York Post.
Another source of revenue for LL Flooring is the sale of their Virginia distribution center.
According to Bloomberg, the company is currently in talks with banks over the possibility of revising its credit agreement in order to avoid potentially failing to satisfy a minimum liquidity need in the third quarter.
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