Closure and Liquidation Timeline
The winding-down process is expected to begin this week, with liquidation sales set to start at the retailer’s stores by Friday.
Source: LL Flooring
LL Flooring anticipates that the shutdown will be completed within the next 12 weeks, although the exact timing will vary depending on the location of each store. Hundreds of locations will be affected by these closing sales.
CEO's Message to Customers
LL Flooring CEO Charles Tyson addressed the company’s customers in a message, expressing regret over the situation. “This is not the outcome that any of us had hoped for,” Tyson wrote.
Source: Virginia Business
“As we begin to wind down operations and close our stores, we are committed to doing so as smoothly as possible to minimize the impact on you, our associates, and the communities we serve.”
Reduction in Stores Leading to Final Shutdown
At the start of 2023, LL Flooring operated more than 400 stores across the United States. However, by the time the company filed for Chapter 11 bankruptcy, it had already begun scaling back, with operations continuing at closer to 300 locations.
Source: Melinda Gimpel/Unsplash
Closing sales had already begun at 94 stores, but now, all remaining outlets will be impacted by the company’s shutdown.
Significant Job Losses Expected
The closure of all stores will result in significant job losses across the country. According to court documents, LL Flooring employed approximately 1,970 workers as of its August 11 bankruptcy filing.
Source: Freepik
The vast majority of these employees—around 99%—held full-time positions across various departments, including retail, corporate offices, and distribution centers.
LL Flooring’s 30-Year History
The history of LL Flooring dates back more than 30 years.
Source: Business Journals
The company was founded by Tom Sullivan in 1993 as a small business in Massachusetts. Over time, the company expanded nationwide and became a major player in the hardwood flooring market, initially operating under the name Lumber Liquidators.
Rebranding After Legal Challenges
In early 2022, the company underwent a rebranding, changing its name from Lumber Liquidators to LL Flooring. This move came after years of challenges and legal battles. In 2015, a report by “60 Minutes” alleged that some of the laminate flooring sold by Lumber Liquidators contained unsafe levels of formaldehyde.
Source: Wikimedia
Following the report, the company stopped selling the product, which was manufactured in China, and in 2017, it paid $36 million to settle two class-action lawsuits.
Financial Struggles Continue
Despite efforts to move forward under its new name, LL Flooring continued to struggle financially in recent years.
Source: iStock
The company reported consistent losses, and net sales fell by 18.5% in 2023, as detailed in its latest earnings report.
Decline in Sales and Increased Debt
Reduced foot traffic and weak demand contributed to the company’s challenges.
Source: Freepik
LL Flooring disclosed in its Chapter 11 filing that its total debt exceeded $416 million as of July 31, compared to assets just over $501 million.
Internal Proxy Battle Over Leadership
Beyond its financial troubles, LL Flooring was also involved in a contentious internal dispute earlier this year. A proxy battle unfolded in the summer, as efforts were made to block founder Tom Sullivan from returning to the company’s board of directors.
Source: Cookie_Studio, Freepik
In June, company leadership urged shareholders to vote for other candidates, accusing Sullivan of pursuing a personal agenda.
Sullivan Returns to the Board
Despite the board’s opposition, Sullivan and his nominees were ultimately elected at the company’s annual shareholder meeting in July.
Source: Freepik
This victory for Sullivan came as LL Flooring was already grappling with its financial challenges and the looming threat of bankruptcy.
End of an Era for LL Flooring
With all stores set to close, LL Flooring’s long history as a prominent retailer in the U.S. is coming to an end.
Source: Freepik
The company is now focused on managing the winding-down process and ensuring a smooth transition for its employees, customers, and the communities it has served for more than three decades.