LL Flooring, at one time known as Lumber Liquidators, has announced that it is closing all of its stores and going out of business. It says sales at all of its stores began today.
“LL Flooring has been working hard to pursue a going-concern sale of the company and has actively negotiated with multiple bidders,” the company said in a statement. “These discussions have not resulted in an offer, with the necessary financing, that would maximize the value of LL Flooring.”
The company said that under Chapter 11 rules, it is required to achieve the highest or otherwise best offer for the company’s business or assets and, in this case, it was determined that a sale of the company’s individual assets, holding closing sales at stores and winding down the business will deliver the most value to creditors.
The company’s problems began about a decade ago, following a “60 Minutes” report that claimed much of the flooring it imported from China did not meet health regulations because they contained high levels of formaldehyde, a claim the company disputed.
Lawsuits followed, sending the company in a downward spiral. Lumber Liquidators settled one lawsuit for $36 million. The lawsuit claimed that the company knew that is was importing flooring that that been soaked in formaldehyde.
Changing the name didn’t seem to help. Consumer dissatisfaction followed LL Flooring into bankruptcy.
Earlier this year the company reported having more than 400 stories in the U.S. Now, according to the company, the number appears to be closer to 300.
