VISALIA – Amidst the backdrop of Chapter 11 bankruptcy filings, LL Flooring has announced the closure of 94 stores nationwide, including its Visalia location.
LL Flooring is making an effort to be transparent in the process of restructuring by providing public access to the Chapter 11 court filings and the process of restructuring. Like many brick-and-mortar franchises, LL Flooring is experiencing sales declines that have made the closures unavoidable. The company bills itself as a supplier of luxury flooring and has more than 300 locations nationwide.
“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,” President and Chief Executive Officer of LL Flooring Charles Tyson said in a statement.
Tyson goes on to say this step is intended to give LL Flooring some additional time and financial flexibility as it reduces its footprint and starts to shut down certain stores “while pursuing a going-concern sale of the rest of our business.”
“As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners,” Tyson said. “I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers.”
Texas and California will be hit the hardest with 11 locations closing in each state. The northeast and east coast states will also see numerous closures. The stores that are slated to close will remain open until the conclusion of the Chapter 11 filings process. The company is seeking a buyer to take over the business as the proceedings continue. LL Flooring is headquartered in Virginia and the Chapter 11 filing is being made in a Virginian bankruptcy court.
According to a statement from the company, employee wages and benefits will continue to be paid and customer orders and gift cards will continue to be honored as part of the legal filing process. Stores that are closing will be conducting liquidation sales to reduce inventories.
Forbes Magazine reports that pandemic-era spending on home improvements reached a peak in the third quarter of 2023 and has been on a steady decline since. The decline in renovation spending impacts numerous businesses including LL Flooring. With interest rates having remained high, homeowners have been reluctant to refinance home mortgages which may have impacted the home renovation sector.
“Interest rates appear to be the most significant driving force for the large-project remodeling slowdown,” Deane Biermeier, resident Forbes Home expert and former general contractor said. “However, many homeowners who are planning to wait out interest rates in their current homes are still spending money on smaller renovations and upgrades to create a more comfortable living space.”
Phone calls to the media department handling LL Flooring by The Sun-Gazette were not returned and it is not clear how many employees will be affected by the closure of the Visalia location. Stores in Fresno and Bakersfield will also be shuttered as bankruptcy proceedings continue. The move will mandate that local employees won’t have the ability to continue employment at other locations locally. All three locations in the Central Valley are already listed by Google as “Stores Closing Soon.”
