Case filing & court posture: Wellmade Floor Coverings International, Inc. filed chapter 11 on August 4, 2025 in the Northern District of Georgia (Case No. 25-58764). Dkt. 1 The filing came one day before a scheduled foreclosure by prepetition lender AHF IC, LLC following a March 26, 2025 federal raid that uncovered alleged labor trafficking involving 300-400 Chinese nationals. Dkt. 14
Liquidity & financing path: The Debtors obtained a $4 million DIP facility from SummitBridge National Investments VIII, LLC at 12% interest. Dkt. 15 An interim order was entered on August 7, 2025 Dkt. 30, with the DIP obligations fully repaid following the asset sale on November 12, 2025. Dkt. 259
Restructuring outcome: Following court-approved bidding procedures Dkt. 99, the Debtors pursued a private sale to AHF IC, LLC under §363. Dkt. 194 The court approved the sale on October 8, 2025 , with closing occurring on November 7, 2025.
Plan exclusivity & current status: Plan exclusivity has been extended through March 2, 2026 (filing) and May 1, 2026 (solicitation). Dkt. 277 The Debtors are pursuing a liquidating plan as post-sale residual issues, including ongoing labor trafficking litigation and mediation, are resolved. Dkt. 264
