LL Flooring Files for Chapter 11 Bankruptcy Protection, Plans to Close 94 Stores

Richmond, Va. — LL Flooring (NYSE: LL), a specialty flooring retailer, has commenced voluntary Chapter 11 bankruptcy proceedings. The Richmond, Virginia-based company, which operates more than 300 stores, will also be delisted from the New York Stock Exchange. The company plans to use the Chapter 11 proceedings to pursue a “going concern sale” of its business, meaning that a buyer could continue business upon acquisition. LL Flooring says it “remains in active negotiations with multiple bidders” and hopes to seek approval from the U.S. Bankruptcy Court for the District of Delaware of a sale of its business within the first few weeks of the proceedings. Hilco Merchant Resources LLC will assist the company in store closing sales at 94 locations. AlixPartners LLP is serving as restructuring advisor to LL Flooring, which has received $130 million in debtor-in-possession (DIP) financing from its existing bank group led by Bank of America.