LL Flooring, once a powerhouse in American home improvement, now faces potential bankruptcy.
With 442 stores across 47 states, LL Flooring’s financial troubles paint a concerning picture of the retail sector under the current administration.
The company has seen a sharp decline in sales as homeowners put off renovations, a trend that speaks volumes about consumer confidence in the Biden economy.
Tom Sullivan founded the company, then known as Lumber Liquidators, in 1994.
Starting from the back of a pickup truck in Massachusetts, Sullivan’s innovative approach of buying excess wood and selling it at a discount helped the company grow rapidly.
By cutting out middlemen and dealing directly with mills, Sullivan transformed a small operation into a nationwide success story.
On the company’s 20th anniversary, Sullivan reflected, “To look back and see how far we’ve come in 20 years is almost like a dream.”
LL Flooring Holdings is considering filing for Chapter 11 bankruptcy, according to people with knowledge of the matter, who asked not to be named discussing private deliberations. https://t.co/Sp5Kigb1K7
— Bloomberg (@business) July 3, 2024
This optimism stands in stark contrast to the company’s current predicament.
Now, LL Flooring is scrambling to stay afloat.
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Sources suggest a bankruptcy filing could come within weeks, allowing the company to reorganize while protected from creditors.
The news sent the company’s shares tumbling by up to 31 percent.
In a bid to shore up finances, LL Flooring is seeking fresh capital and considering selling a Virginia distribution center.
LL Flooring isn’t alone in its struggles.
Nearly 2,600 store closures have been reported in 2024 so far.
Even retail giants like Walmart have shuttered underperforming locations, while Rite Aid is closing dozens of pharmacies.
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Perhaps most telling is the impact on discount stores which typically do pretty well during tough times.
The closure of all 371 99 Cents Only stores and the planned shutdown of 1,000 Family Dollar and Dollar Tree locations signal deep-rooted economic issues.
