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LL Flooring, which was previously called Lumber Liquidators, has filed for Chapter 11 bankruptcy.
The flooring company announced on Sunday night that it planned to close 94 locations across the country. The company operates more than 300 stores.
LL Flooring is reorganizing its company and noted in its announcement that it was actively engaged in negotiations with "multiple bidders" to sell the company.
The announcement also stated that the company's stores will continue to operate as normal during the Chapter 11 restructuring.
“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,” Charles Tyson, President and Chief Executive Officer of LL Flooring, said in a statement.
He said the restructuring would "provide LL Flooring with additional time and financial flexibility" while it pursues "a going-concern sale of the rest of our business."
Store closures are expected in 47 states where the company operates, including stores in Alabama, Arizona, California, Colorado, Connecticut, 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 Virginian, and Wisconsin.
A full list of closures and affected states can be found on the company’s website.
Chapter 11 bankruptcy is a procedure that allows a company to reorganize its assets and debts under court supervision.
The company said the bankruptcy filing comes after it has weathered economic and operational hurdles caused by inflation and rising labor costs.
According to court documents, the flooring company has between $500m to $1bn in assets and currently owes between $100 to $500m to as many as 100,000 creditors, according to WRIC.
