A massive home improvement company may now close all stores if it fails to meet its financial obligations and files bankruptcy.
LL Flooring, previously known as Lumber Liquidators before its renaming in 2020, is currently considering filing for bankruptcy.
The company has a total of 442 stores across 47 states after coming from a modest beginning selling from the back of a pick-up truck in Stoughton, Massachusetts — about 22 miles south of Boston, according to the Daily Mail.
“To look back and see how far we’ve come in 20 years is almost like a dream,” founder Tom Sullivan said about the company in 2014, per the outlet.
“We’ve gone from a tiny operation to having served more than two million people and, along the way, changed the way hardwood flooring is sold.
Our customers know that the value and quality of their floors are unmatched.”
There has been some chatter about LL Flooring considering Chapter 11 Bankruptcy, sources originally told Bloomberg.
People aware of the company’s movements said it may file within the coming weeks.
If it files, it will be protected from creditors as it restructures its foundation.
However, a chapter 7 bankruptcy will lead the company to liquidate its assets and/or begin closures of its stores.
Potential investors have been contacted by LL Flooring’s company adviser Houlihan Lokey about putting money towards a new version of the brand, per Bloomberg.
After the bankruptcy speculations were published, shares of the company fell 53.5% to 60 cents, according to the New York Post.
LL Flooring is also trying to sell a distribution center in Virginia to bring in money.
It might fail to meet a minimum liquidity rule in its credit agreement during the third quarter, so it is currently in discussions with banks about changing the agreement, reports Bloomberg.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
Also Read: Retirees Will Now Receive More Money For Social Security
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