Retailer LL Flooring is filing for bankruptcy and looking to close over 90 of its stores, according to a filing with the U.S. Securities and Exchange Commission (SEC).
On Sunday, the company filed for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. It aims to "pursue a going-concern sale of its business," the company said in a statement.
"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," CEO Charles Tyson said.
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Tyson said this filing "is intended to provide LL Flooring with additional time and financial flexibility" as it reduces its physical footprint and closes certain stores while pursuing a going-concern sale of the rest of the business.
The company has already initiated store closing sales at 94 of its over 300 locations. Those 94 stores will remain open and serving customers through this closing process, LL Flooring said.
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The rest of its physical store portfolio, along with its online marketplace, will continue "to serve customers with few changes to store operations and policies," according to the company's statement.
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Tyson said the company will remain "committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners," as they move through the proceedings.
The company said it secured $130 million in debtor-in-possession financing from an existing bank group led by Bank of America.
