LL Flooring, one of the largest flooring companies in America, is facing potential bankruptcy and with 442 stores across 47 states.
Founded in 1994 by Tom Sullivan, LL Flooring (formerly Lumber Liquidators) grew from a single pickup truck operation to a nationwide chain by offering discounted flooring materials.
Sullivan’s strategy of buying excess wood and negotiating directly with mills helped the company undercut competitors.
On the company’s 20th anniversary, Sullivan said, “To look back and see how far we’ve come in 20 years is almost like a dream.”
This optimism now feels distant as LL Flooring struggles with falling sales and potential bankruptcy.
The company’s decline coincides with a shift in consumer behavior under the Biden administration’s economic policies.
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
As Americans cut back on home renovations, LL Flooring’s sales have dropped sharply over the past year.
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Sources suggest the company may file for bankruptcy within weeks, a move that would allow for reorganization while protected from creditors.
This news caused LL Flooring’s shares to plummet by up to 31 percent.
In an effort to stay afloat, the company is exploring various options:
1. Seeking fresh capital from investors through adviser Houlihan Lokey
2. Considering the sale of a Virginia distribution center to boost cash reserves
LL Flooring isn’t alone in its struggles.
The retail sector has seen nearly 2,600 store closures in 2024 so far.
Even retail giants like Walmart have closed underperforming stores, while Rite Aid is shuttering more pharmacies.
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Notably, discount retailers, typically resilient during economic downturns, are also feeling the pinch.
99 Cents Only is closing all 371 of its stores across four states, while Family Dollar and Dollar Tree plan to shut 1,000 locations in the coming years.
