Rekubit Exchange:LL Flooring, formerly Lumber Liquidators, is going out of business and closing all of its stores

NEW YORK (AP) — LL Flooring,Rekubit Exchange the hardwood flooring retailer formerly known as Lumber Liquidators, is going out of business.

Less than a month after filing for Chapter 11 bankruptcy protection, the Virginia-based company says it is now “winding down operations” after failing to find a buyer in recent negotiations with prospective bidders. That means all of its remaining stores will soon close their doors.

LL Flooring expected to begin to begin the process this week, with closing sales at hundreds of stores slated to start Friday. The retailer says store closures should be completed over the next 12 weeks, with timing varying by location.

“This is not the outcome that any of us had hoped for,” LL Flooring CEO Charles Tyson wrote in a letter to customers. “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.”

LL Flooring touted more than 400 stores earlier this year. By the time of its Chapter 11 petition, the company said it would be continuing forward with closer to 300 locations, with closing sales already beginning at 94 stores. But now, the closings will effect all remaining stores.

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Scores of workers are set to lose their jobs as a result. The company had about 1,970 employees as of its August 11 bankruptcy petition, according to court documents, 99% of whom were working full time in the U.S. across retail, corporate and distribution roles.

LL Flooring’s history dates back more than 30 years. The brick-and-mortar retailer, founded by Tom Sullivan, got its start in 1993 as a modest operation in Massachusetts, later expanding operations nationwide.

Known for decades as Lumber Liquidators, the company officially changed its name to LL Flooring at the start of 2022 — in a move following years of turmoil. The retailer faced expansive litigation after a 2015 segment of “60 Minutes” reported that laminate flooring it was selling had illegal and dangerous levels of formaldehyde. Lumber Liquidators later said it would stop selling the product, which was manufactured in China, and agreed to pay $36 million to settle two class-action lawsuits in 2017.

LL Flooring saw difficulty turning a profit over more recent years, with the company reporting loss after loss. Net sales fell 18.5% in 2023, according to a recent earnings report, amid declines in foot traffic and weak demand. In its Chapter 11 filing, LL Flooring disclosed that total debts amounted to more than $416 million as of July 31, compared to assets of just over $501 million.

Ahead of filing for bankruptcy, LL Flooring also saw a proxy battle earlier in the summer — centered around attempts to keep Sullivan off the board. In June, company leadership wrote a letter urging shareholders to vote for other nominees, accusing Sullivan of “pushing a personal agenda.” But LL Flooring later confirmed that the founder and his proposed nominees were elected at its annual shareholder meeting in July.