Connecticut
LL Flooring To Close 4 CT Stores, Files For Bankruptcy
CONNECTICUT — LL Flooring, a flooring store chain that filed for Chapter 11 bankruptcy proceedings over the weekend, plans to close 94 stores nationwide, including four in Connecticut.
According to a news release, LL Flooring announced Sunday it has commenced voluntary Chapter 11 reorganization proceedings in the U.S. Bankruptcy Court for the District of Delaware.
The company intends to use these proceedings to “pursue a going-concern sale of its business.”
LL Flooring currently operate over 300 continuing stores across the U.S. that, along with its online platform, “are open and continuing to serve customers with few changes to store operations and policies,” according to the release.
The company recently initiated store closing sales at 94 of its locations, which will remain open and serving customers through the closing process.
In Connecticut, LL Flooring announced store closings planned for locations in Norwalk, Milford, North Haven and Waterbury.
The company also operates store locations in Danbury, Waterford and Hartford, which are currently expected to remain open.
LL Flooring officials plan to sell the company, and noted in the release they are in “active negotiations with multiple bidders” and hope to seek bankruptcy court approval of a sale of its business in the first few weeks of the Chapter 11 proceedings.
“After comprehensive efforts to enhance our liquidity position in a challenging macro environment, a determination was made that initiating this Chapter 11 process is the best path forward for the company,” LL Flooring CEO Charles Tyson said in a news release. “Today’s step is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while pursuing a going-concern sale of the rest of our business. As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners. I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
LL Flooring has filed a number of customary motions in connection with the Chapter 11 proceedings. Once approved by the court, those motions will allow the company to “smoothly transition its business into Chapter 11,” including by “granting authority to continue payment of wages and maintain healthcare and other benefits, as well as certain other relief customary in these circumstances.”
The company has sought authorization to continue honoring customer commitments subject to certain modifications of store operations or policies relating to its acceptance of customer deposits and gift cards.
The company also intends to pay vendors and suppliers in full under normal terms for goods and services provided on or after the Chapter 11 filing date, and has requested court approval to do so.
In addition to Connecticut, LL Flooring plans to close store locations in the following states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.
A full list of planned store closures can be found here.