LL Flooring has signed an agreement to sell 219 of its stores to F9 Investments, the company announced on Friday.
The agreement comes days after the retail company announced it would be closing over 400 stores nationwide.
LL Flooring filed a Chapter 11 bankruptcy claim on Aug. 11 after the company "spent several months" trying to resolve liquidity concerns and refinance debt obligations, according to court documents filed in the U.S. Bankruptcy Court in Delaware.
The retail company announced on Sept. 6 that it would be closing its stores and starting closing sales. Now, the company has an agreement in the works.
“We are pleased to have reached this agreement with F9 Investments for a going-concern sale following significant efforts by our team and advisors to preserve the business and maintain ongoing operations,” Charles Tyson, LL Flooring’s president and chief executive officer, said in the press release.
“As we move through the court-supervised process toward the approval and completion of this transaction, we remain committed to continuing to serve our valued customers and working closely with our vendors and partners,” Tyson said.
In addition, the retail company will work with Hilco Merchant Resources, LLC, on the store closing sales at 211 of its locations. The stores include the recently initiated 117 LL Flooring store closings and the 94 store closings that was previously announced before the store’s Chapter 11 filing on Aug. 11.
USA TODAY reached out to F9 Investments for comment.
Here is what you need to know about the LL Flooring's agreement.
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F9 investments will “acquire 219 stores, inventory in those stores and in the Company’s Sandston, Virginia, distribution center, LL Flooring’s intellectual property and other company assets," the release states.
This transaction is expected to be finalized by the end of September and is “subject to approval by the Bankruptcy Court and other closing conditions,” the release said.
In an interview with FloorDaily.net, Tom Sullivan, F9 Investments chairman and former CEO and founder of LL Flooring, confirmed that he and the F9 Investments CEO, Jason Delves, will be taking over the 219 LL Flooring stores.
The agreement also includes the warehouse and intellectual property, Sullivan confirmed.
Sullivan said the change back to Lumber Liquidators was not just for nostalgic purposes, rather, it was a decision that was made for their customers.
"How this company grew was the people in the stores that were all motivated to make the company successful," Sullivan said.
The change back to the black and yellow logo felt like the right thing to do and a way for the private company to "turn it around pretty quick," Sullivan said.
"It's just getting back to basics." he said. "It's just something about the Lumber Liquidators that works."
LL Flooring, formerly known as Lumber Liquidators, started from humble beginnings, the company says, launching "out of a pickup truck" in Stoughton, Massachusetts, about 21 miles south of Boston.
The company changed its name to LL Flooring in 2020 after stock prices fell, Floor Covering Weekly reported.
A 2015 investigation by CBS' "60 Minutes" revealed the company's products contained high levels of formaldehyde, a known cancer-causing chemical.
The company has more than 400 store locations across the United States. Here is a list of the states that have a LL Flooring store:
Ahjané Forbes is a reporter on the National Trending Team at USA TODAY. Ahjané covers breaking news, car recalls, crime, health, lottery and public policy stories. Email her at [email protected]. Follow her on Instagram, Threads and X (Twitter) @forbesfineest.
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