Houston/ Retail & Industry
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Published on August 13, 2024
LL Flooring Closes 94 Stores Nationwide Amid Chapter 11 Bankruptcy, Including Houston and Katy LocationsSource: Google Street View

LL Flooring, known previously as Lumber Liquidators, has commenced closing sales at 94 of its retail locations nationwide following its Chapter 11 bankruptcy filing. The Houston Chronicle reports that among the affected stores are those in Houston and Katy, as part of a larger series of shutdowns that include 11 stores in both California and Texas. Not all Texas stores, however, are meeting their end; locations such as those in Northwest Houston and League City will continue operations for the time being.

Under the bankruptcy protection filed in Delaware, LL Flooring aims to garner additional time and financial flexibility, according to a statement by Charles Tyson, the company’s president and CEO. Having faced scrutiny after a 2015 "60 Minutes" report that accused the company of selling flooring with unhealthy levels of formaldehyde, the company later agreed to a $33 million fine for misleading investors about the levels of toxins in some of its products—a point of contention that raised major challenges for the retailer's credibility and operational standing, as noted by The Houston Chronicle.

In a detailed account of the company's plans post-filing, CBS News highlighted the enigmatic situation that while determining which stores to close, LL Flooring's financial advisors also suggested which locations should remain operational. Despite the closures, more than 300 LL Flooring retail stores are striving to maintain their clientele base across the United States. The company remains active online for consumers.

Shuttering stores are set to stay open long enough to ensure remaining inventory is sold or transferred. In its Chapter 11 declaration, the company indicated that gift cards would not be accepted after September 3, with outstanding gift cards valued at around $131 million, as observed from court filings. "As we move through this process, we are committed to continuing to serve our valued customers, and to working seamlessly with our vendors and partners," Tyson told the Houston Chronicle. According to reports, the ultimate objective for LL Flooring amidst this upheaval remains the sale of the business.