If you are patronizing the service of LL Flooring, then you might want to consider looking for an alternative, especially if their store around your location will be closing. The company made it known that it would be closing its almost 450 stores in the US after it filed for bankruptcy and didn’t get a buyer when the company was put up for sale.
Why is the store shutting down?
The company announced in a letter it addressed to customers that it would be shutting down its operations on Friday, September 6, after it had initially taken the step to file for Chapter 11 bankruptcy and also failed to find a buyer for its over 400 stores located in almost every state in the United States in the month following its bankruptcy declaration.
This will see the end of the company, which in the last thirty years of its operations has undergone progressive change before the unfortunate incidence of its bankruptcy declaration. The company’s primary service is in flooring using bamboo, vinyl, tile, hardwood, and laminate. The company made it known that it would take another three months for all of its stores to be fully closed but maintained that operations would be stopped immediately beginning Friday, September 6.
Dealing with troubles and losses
The company has had to deal with a series of losses and internal troubles in the last year, especially business losses and who gets to lead the company.
In the summer, the company’s board accused its founder, Tom Sulivan, of ‘pursuing a personal agenda’ and sought for him to be voted out of the leadership of the company in a letter that was sent out to shareholders just before the bankruptcy protection was filed. The issue was resolved, and Sulivan stayed on the board following the election by shareholders in their annual meeting in July.
The company has also struggled with turning a profit as it posted a debt report of $416 million, which, when compared to the company’s $501 million possession of assets, was the signal that showed trouble was looming. More than this, the company has gone on to record an insurmountable series of losses that further crippled its almost non-existing income, all of these coming after its net sales fell by 18.5% in the previous year.
The closures will not only impact the company but also thousands of Americans who are employed. The company in its bankruptcy petition had noted that it had 1970 workers on its payroll, with over 90% of them full-time workers who were in various departments.In what have been the hard-hitting effects of inflation, LL Flooring joins other American companies that are either shutting down operations fully or partially, notable among them Applebee’s, Best Buy, Body Shop, and CVS.
