Home improvement chain with 442 locations in 47 states sparks fears of store closures as it mulls bankruptcy

One of America's biggest flooring suppliers is considering bankruptcy - nan latest retailer to look financial problems.

LL Flooring, pinch 442 stores crossed 47 states, has seen its income falling complete nan past twelvemonth arsenic Americans trim backmost connected renovating their homes.

Tom Sullivan founded Lumber Liquidators successful 1994 by buying excess wood from companies and reselling it astatine a discount.

The institution astatine first did business retired nan backmost of a prime up motortruck successful Stoughton, Massachusetts.  

Shortly after, Sullivan began negotiating straight pinch mills arsenic he sought to trim retired nan wholesalers who acted arsenic middleman - and person little prices to undercut rivals.

Celebrating 2 decades successful business successful 2014, Sullivan said astatine nan time: 'To look backmost and spot really acold we've travel successful 20 years is almost for illustration a dream.

'We've gone from a mini cognition to having served much than 2 cardinal group and, on nan way, changed nan measurement hardwood flooring is sold. 

'Our customers cognize that nan worth and value of their floors are unmatched.'

Sullivan near nan institution successful 2017 and since past has fallen retired pinch nan board. He has tried to return complete nan institution but has truthful acold been rebuffed.

Lumber Liquidators was renamed LL Flooring successful 2020.  

News that LL Flooring was considering Chapter 11 bankruptcy was reported by Bloomberg connected July 3. 

A personification pinch knowledge of nan matter told nan publication that LL Flooring whitethorn record wrong nan 'coming weeks'. Such a move would protect it from creditors while it reorganizes nan business. 

Shares fell arsenic overmuch arsenic 31 percent aft nan study was published. 

According to Bloomberg, institution advisor Houlihan Lokey has been contacting imaginable investors astir a woody to inject caller superior into LL Flooring. 

The institution is besides attempting to waste a distribution halfway successful Virginia to fortify its rate reserves.

LL Flooring is not unsocial successful having financial problems successful 2024. Many smaller chains, already reeling from nan pandemic, person faced higher costs of business, peculiarly labor. 

There person been almost 2,600 shop closures truthful acold successful 2024. In caller weeks, Walmart has closed three much of its underperforming locations, while Rite Aid is shutting different 27 pharmacies. 

Dollar stores person been deed difficult too, pinch 99 Cents Only announcing successful April it would shutter each 371 of its locations across California, Texas, Arizona and Nevada. 

Similarly, 1,000 Family Dollars and Dollar Trees will permanently shut complete nan adjacent fewer years.