Three LL Flooring stores in New Jersey are closing — among the 94 stores in 30 states the chain is shuttering over the next two months — as the company files for bankruptcy.
The company, formerly known as Lumber Liquidators, said it has nearly $110 million in long-term debt, in filings made in Delaware Bankruptcy Court on Sunday.
The Richmond, Virginia-based company said in the filings that slowing home sales and rising interest rates contributed to lagging sales in the home improvement market. The company’s 300 other stores will remain open, including the North Jersey locations in South Hackensack and Fairfield.
LL Flooring said it will stop accepting gift cards at all of its locations, including the ones that aren’t closing, on Sept. 4 as a part of the bankruptcy process, and that gift cards cannot be exchanged for cash. The company said in the filings that it has about $131 million in outstanding gift cards.
Orders that were placed before Aug. 11 must be picked up no later than Sept. 11, said a letter to customers obtained by NorthJersey.com.
According to the filings, LL Flooring has attempted to find a buyer but is willing to solicit offers to close more stores if one cannot be found.
“The company is engaged in discussions with potential buyers of the company, and this process will allow us to evaluate binding bids through a court-supervised process in order to maximize value for all of our stakeholders,” LL Flooring wrote in a letter to its customers. “While this could change, the company currently anticipates closing a sale of the business by end of September if a buyer is identified.”
The company said it has garnered $130 million in Chapter 11 financing, funded through existing lenders led by Bank of America.
What NJ locations are closing?
There are 15 LL Flooring locations in New Jersey, and three of them are closing. A spokesperson for LL Flooring declined to specify the exact closing date beyond the two-month window.
- 531 High St., Mount Holly.
- 507 King Georges Road, Woodbridge.
- 1450 Clements Bridge Road, Woodbury.
What happens after a bankruptcy filing?
A bankruptcy does not necessarily mean a company is doomed.
“A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time,” according to the U.S. courts website.
“Some companies don’t survive the Chapter 11 process, but many others, including household names such as Marvel Entertainment and General Motors, successfully emerge and thrive,” CFO Magazine said in a 2020 article.
Earlier this year, fashion retailer Express was able to emerge from bankruptcy with its stores intact, as was Joann fabrics and crafts.
NJ bankruptcy closings
Union-based Bed Bath & Beyond filed for bankruptcy in April 2023 and closed hundreds of stores in the U.S., including 13 in New Jersey. Last summer, Overstock.com bought the bankrupt retailer’s assets, relaunching BB&B as an online-only presence at bedbathandbeyond.com.
Rite Aid declared bankruptcy in October and has since closed 40 stores in New Jersey. Red Lobster declared bankruptcy in May as it sought a buyer. Big Lots declared bankruptcy and announced plans to close hundreds of stores.
This article contains information from USA Today.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter:@danielmunoz100 and Facebook
