A home improvement company is now closing all stores after it filed for bankruptcy and unfortunately leading to liquidation.
Home improvement retailer LL Flooring has announced the closure and liquidation of all its remaining stores, totaling over 400 locations across 47 states, after two potential bids to save the company fell through.
The decision to liquidate came after the company rejected stalking-horse bids from F9 Investments and Issac Capital Group, deeming them insufficient.
According to a declaration from Chief Restructuring Officer Holly Etlin on September 2, F9’s initial bid significantly undervalued LL Flooring’s inventory and did not account for other assets like furniture, fixtures, equipment, and intellectual property.
Liquidator bids were approximately 20% higher than F9’s proposal, indicating a potential loss of at least $30 million in value for the company.
A subsequent bid from F9 also failed to meet the inventory valuation needed for liquidation.
Additionally, Issac Capital could not proceed with its bid due to a lack of committed financing, which made it impossible to close a transaction within the Chapter 11 timeline.
LL Flooring filed for Chapter 11 bankruptcy protection on August 11 in the U.S. Bankruptcy Court for the District of Delaware, aiming to sell its assets after facing significant challenges in the housing and remodeling markets following the decline of the Covid-19 pandemic.
Initially, the company planned to close and liquidate 94 of its stores.
The decline in business severely impacted LL Flooring’s liquidity, and attempts to sell its Sandston, Virginia distribution center to improve cash flow were unsuccessful.
The company sought a buyer for its entire operation but ultimately decided that filing for bankruptcy was the best option to facilitate a sale.
Since no viable buyer has emerged during the bankruptcy proceedings, LL Flooring will now proceed with winding down operations, closing its retail stores, liquidating store-level assets, and likely selling off other assets such as intellectual property and furniture, fixtures, and equipment to various buyers, reports The Street.
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Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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