LL Flooring has to close 94 branches after bankruptcy

Retailer LL Flooring has filed for bankruptcy and plans to close more than 90 of its stores, according to a filing with the U.S. Securities and Exchange Commission (SEC).

On Sunday, the company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. It intends to “pursue a sale of the business while continuing operations,” the company said in a statement.

“After extensive efforts to improve our liquidity position in a challenging macro environment, it was determined that initiating this Chapter 11 proceeding was the best path forward for the Company,” said CEO Charles Tyson.

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Tyson said the filing is intended to provide LL Flooring with “additional timing and financial flexibility” as the company reduces its physical presence and closes certain stores while pursuing a sale of the remainder of the business while continuing operations.

An LL Flooring store in Beltsville, Maryland, on August 21, 2023. (Nathan Howard/Bloomberg via / Getty Images)

The company has already begun clearance sales in 94 of its more than 300 stores. Those 94 stores will remain open and serve customers during the closure process, LL Flooring said.

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The rest of the physical store portfolio as well as the online marketplace will continue to be available to customers “with only minor changes to business operations and policies,” the company said in a statement.

An LL Flooring store in Rockville, Maryland, on August 21, 2023. (Nathan Howard/Bloomberg via / Getty Images)

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Tyson said the company will continue to “ensure that we continue to serve our valued customers and work seamlessly with our suppliers and partners” as the process progresses.

The company said it had secured $130 million in financing from an existing banking group led by Bank of America under a debtor-in-possession arrangement.