National retailer LL Flooring, formerly known as Lumber Liquidators, has announced its decision to close its doors permanently after 30 years in business, following an unsuccessful attempt to find a buyer just weeks after filing for bankruptcy.
The Richmond, Virginia-based company, which recently operated 442 stores nationwide, confirmed it will cease operations after negotiations with several potential buyers failed to produce an offer.
In a statement on its website, the company noted that it had already begun closing 94 stores last month as part of the process.
LL Flooring, renowned for its hard surface flooring products and as a significant competitor to Home Depot, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware in early August.
At that time, the company secured $130 million in debtor-in-possession financing from a banking group led by Bank of America.
Despite the Chapter 11 proceedings, which typically require a company to secure the highest or most favorable offer for its assets, LL Flooring determined that selling its individual assets, holding closing sales at stores, and winding down its operations would provide the best value to creditors.
In a message to customers, CEO Charles Tyson expressed deep regret over the company’s fate. “It is with a heavy heart that we must inform you that we are beginning the process of winding down LL Flooring’s business and closing all of our stores,” Tyson wrote.
“This is not the outcome any of us had hoped for. Since 1993, LL Flooring has been dedicated to helping customers create beautiful spaces, offering support every step of the way — from selecting the right materials to arranging expert installations.”
The company’s closure will lead to the loss of around 2,000 jobs. Tyson also shared that closing sales would begin on Friday at all remaining stores, with the process lasting 12 weeks and store closures happening on a rolling basis.
Existing installation orders will be completed within 30 days, but the company has stopped taking new orders.
“We look forward to offering you great deals during the closing process,” Tyson added. “We’ve been proud to serve our customers over the years and appreciate your business and trust in us for your flooring needs.”
LL Flooring was founded in 1994 by Tom Sullivan, a building contractor who began purchasing surplus wood from other companies. The business quickly expanded, becoming one of the largest hardwood flooring retailers in the U.S., and ventured into Canada in 2010.
However, the company has faced significant challenges since a 2015 investigative report on “60 Minutes” alleged that Lumber Liquidators’ laminate flooring products contained dangerously high levels of formaldehyde, a carcinogen.
The formaldehyde was reportedly found in the glue used to manufacture composite wood products such as fiberboard, a material used in laminate flooring.
Following the report, the retailer’s stock plummeted by 23%, dropping to $39.73. Since the Chapter 11 filing last month, its stock has fallen further from 84 cents to just 2 cents.
In 2015, Lumber Liquidators pleaded guilty to the illegal importation of hardwood flooring and was penalized $13.15 million the following year. In 2020, the company rebranded itself as LL Flooring in an effort to distance itself from its past controversies.
Despite these efforts, the company has been unable to recover and will now close all of its stores, marking the end of its three-decade presence in the retail flooring industry.
