LL Flooring Files for Chapter 11, Sullivan Resigns from Board

Richmond, VA, August 12, 2024-"LL Flooring, formerly known as Lumber Liquidators, filed for Chapter 11 bankruptcy late Sunday night,” reports Yahoo Business.

“The specialty flooring company is beginning to reorganize and also intends to pursue a sale of the company. They state that they are actively engaged in negotiations with multiple bidders and hope to seek court approval in the coming weeks. The company says that during the Chapter 11 bankruptcy process they will be ‘generally operating in the normal course.’

“LL Flooring announced that they will be closing 94 locations nationwide in 31 states.

“‘After comprehensive efforts to enhance our liquidity position in a challenging macro environment, a determination was made that initiating this Chapter 11 process is the best path forward for the Company. Today’s step is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while pursuing a going-concern sale of the rest of our business. As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners. I am appreciative of our associates for their ongoing hard work in providing the best experience for our customers,’ said Charles Tyson, president and chief executive officer of LL Flooring.

“LL Flooring says that over the past year the company has experienced several macroeconomic and operational changes which has put a strain on the company. This, of course, is due to inflation and the rising costs of labor as well as a shift in how customers are spending and how often they make these investments.

“LL Flooring has received a commitment for debtor-in-possession financing of up to $130 million. This funding will ensure that the company can continue its normal operations.

“According to court documents, the company holds $500 million to $1 billion in assets and owes $100 million to $500 million to up to 100,000 creditors.”

The company intends to pay vendors and suppliers in full under normal terms for goods and services provided on or after the Chapter 11 filing date and has requested court approval to do so.

According to the 8K filing, “On August 8, 2024, each of Thomas Sullivan, Jason Delves and Jill Witter (collectively, the “F9 Directors”) delivered notice of their respective resignation as a member of the Board effective immediately. Such resignations were not a result of a disagreement with the Company or the Board on any matter relating to the Company’s operations, policies or practices or any other matter.

“On August 11, 2024, following the resignation of the F9 Directors, the Board reduced the size of the Board from 9 directors to 6 directors.

“On August 9, 2024, Robert L. Madore Jr., gave notice to the Board that he was resigning for Good Reason (as defined in Mr. Madore’s severance agreement) as the Company’s Chief Financial Officer and Executive Vice President of Finance at LL Flooring, Inc., effective immediately. Mr. Madore’s resignation was not a result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

“On August 9, 2024, the Board appointed Susan Bryan to serve as interim Chief Financial Officer of the Company, replacing Mr. Madore. Prior to her appointment as interim Chief Financial Officer, Ms. Bryan served as the Company’s Vice President of Finance.

“In connection with Ms. Bryan’s appointment, the Board increased Ms. Bryan’s annual base salary to $375,000.”