A Home Depot rival is now getting saved by a private firm, allowing the business to continue after filing for bankruptcy and closing stores.
LL Flooring, formerly known as Lumber Liquidators — a Home Depot rival, has reached an agreement to be acquired by F9 Investments, its largest shareholder, as the company navigates its bankruptcy proceedings.
Just a month before LL Flooring filed for bankruptcy, F9 Investments issued an open letter to the company’s shareholders, urging them to support its slate of board nominees.
In the letter, F9 criticized the existing board for its operational and financial missteps, warning that these decisions were jeopardizing the company’s future.
This move comes over a year after LL Flooring rejected a buyout offer from F9’s subsidiary, Cabinets to Go, which proposed $5.76 per share in cash.
At the time, LL Flooring claimed the offer significantly undervalued the company but expressed openness to discussions about opportunities that would benefit shareholders.
LL Flooring’s challenges were exacerbated by pressure in the home improvement sector, leading to difficulties in paying bills and causing vendors to withhold shipments.
This situation prompted the company to focus on strengthening relationships with its suppliers as it works to stabilize its operations.
CEO Charles Tyson expressed relief at reaching the agreement with F9 Investments, emphasizing the importance of maintaining business continuity.
“We are pleased to have reached this agreement for a going-concern sale following significant efforts by our team and advisors to preserve the business,” he stated.
Tyson assured customers and vendors that LL Flooring remains committed to providing excellent service throughout the court-supervised process leading to the transaction’s approval and completion.
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Also Read: Another Mall Clothing Retailer Now At High Risk of 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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