LL Flooring reported that it had commenced Chapter 11 bankruptcy proceedings. The retailer of hard- and soft-surface flooring based in Richmond, Virginia, has more than 300 stores and said it intends to use these proceedings to pursue a going-concern sale of its business.

The company said it has secured $130 million in debtor-in-possession (DIP) financing from an existing bank group led by Bank of America.

LL Flooring also said that it will close 94 stores. They will remain open, serving customers through the closing process. 

“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," said LL Flooring CEO Charles Tyson. 

Last year, LL Flooring said that it was exploring strategic alternatives, including a possible sale. In May 2023, F9 Investments, owned by LL Flooring’s founder and former CEO Tom Sullivan, made a bid to buy the company for $5.76 per share but was rejected by LL Flooring’s board. Sullivan’s firm made a second bid in November for $3.00 per share. In October 2023, U.S. investment firm Live Ventures offered to buy the company for about $180 million in cash. 

At the company's 2024 annual meeting in July, shareholders elected three F9 board nominees—Tom Sullivan, Jason Delves, and Jill Witter—to serve as directors on LL Flooring’s Board of Directors.

Read recent coverage of LL Flooring here.