LL Flooring Holdings, Inc., the successor to Lumber Liquidators, filed chapter 11 on August 11, 2024 in Delaware to fund a going-concern sale process while preparing for store closures. The specialty flooring retailer, operating 430 stores across 46 states with ~1,970 employees, cited demand normalization post-pandemic, vendor shipment stoppages (80% of volume affected), and reputational overhang from a 2015 formaldehyde controversy. With $416 million in total debt, $8 million in cash, and a $130 million DIP ABL facility from Bank of America, the company initially pursued a sale process but pivoted to full liquidation within a month after finding no buyer. F9 Investments, led by founder Thomas Sullivan, acquired 219 stores and associated assets (later rebranded as Lumber Liquidators); the remaining 211 stores liquidated. The Sandston, Virginia distribution center sold for $104.75 million. A liquidating plan was confirmed on December 18, 2024, establishing a liquidating trust to administer remaining assets and pursue litigation claims. Secured and priority claims are treated as unimpaired, while general unsecured creditors receive pro rata distributions from trust assets. Equity holders receive no recovery.
