Pursuing sale of enterprise as a going concern
Guarantee debtor-in-possession financing commitments assist operations
Proceed to serve prospects and supply a variety of onerous and delicate floor flooring on-line and in retailer
RICHMOND, Va.–(BUSINESS WIRE)–LL Flooring Holdings, Inc. (LL Flooring or the Firm) (NYSE: LL) immediately introduced that the Firm and sure of its subsidiaries have filed for chapter beneath the Chapter Code. The provisions of Chapter 11 provoke voluntary reorganization proceedings. LL Flooring intends to make use of these proceedings to pursue the sale of its persevering with operations.
LL Flooring is usually working usually throughout this course of and stays centered on offering prospects with a wide range of onerous and delicate floor flooring and an important buying expertise. The corporate has greater than 300 ongoing shops and its on-line platform in america, that are open and persevering with to serve prospects with few modifications to retailer operations and insurance policies. Moreover, LL Flooring has entered into an settlement with Hilco Service provider Sources, LLC to help with the corporate’s not too long ago launched retailer closing gross sales marketing campaign at its 94 areas. The 94 shops will proceed to function and serve prospects through the closure course of.
Previous to submitting for Chapter 11 chapter, the corporate carried out an intensive advertising course of for its enterprise and sure property, together with its distribution heart in Thornston, Virginia. The advertising course of has attracted widespread consideration, and the corporate intends to make use of the Chapter 11 course of to proceed pursuing a going-concern sale of its enterprise beneath the Chapter Code. The corporate stays in lively talks with a number of bidders and hopes to hunt chapter court docket approval to promote its enterprise inside the first few weeks of Chapter 11 proceedings.
LL Flooring has secured debtor-in-possession (DIP) financing commitments of as much as $130 million from an present banking group led by Financial institution of America. Topic to court docket approval, the incremental liquidity offered by the DIP Financing coupled with money generated by the Firm’s ongoing operations is predicted to assist the enterprise throughout these proceedings.
Charles Tyson, President and CEO of LL Flooring stated: After a complete effort to strengthen our liquidity place in a difficult macro surroundings, we’ve decided that initiating the Chapter 11 course of is the most effective path ahead for the corporate. Right now’s actions are designed to offer LL Flooring with further time and monetary flexibility as we scale back our bodily footprint and shut sure shops whereas pursuing the sale of the remaining operations as a going concern. As we full this course of, we’re dedicated to persevering with to serve our valued prospects and dealing seamlessly with our distributors and companions. I respect the continued onerous work of our workers to offer the most effective expertise for our prospects.
LL Flooring has filed a number of customary motions associated to Chapter 11 litigation. As soon as permitted by the court docket, these motions will permit the corporate to easily transition its operations to Chapter 11, which can embody granting authority to proceed paying wages, preserve well being care and different advantages, and sure different reliefs customary in these areas. The corporate has sought authorization to proceed fulfilling buyer commitments topic to sure modifications in retailer operations or insurance policies for accepting buyer deposits and present playing cards. Any updates to retailer operations or insurance policies will likely be posted on the corporate’s web site, the place prospects may also discover a checklist of areas conducting retailer closing gross sales. The Firm intends to pay its distributors and suppliers in full on regular phrases for items and providers offered on or after the Chapter 11 submitting date and has requested the Courtroom’s approval to take action.
For extra details about the Chapter 11 course of for companies, go to www.LLFlooringRestructuring.com.
Courtroom paperwork and different info associated to the lawsuit can be found on a separate web site managed by the agency’s claims agent, Stretto, at: https://circumstances.stretto.com/LLFlooring; name a Stretto consultant toll-free at 855-314-5841 if arriving from america or From outdoors Canada, name 714-716-1925; or electronic mail Stretto TeamLLFlooring@stretto.com.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as authorized counsel, Houlihan Lokey (NYSE: ) is serving as monetary advisor, and AlixPartners LLP is serving as restructuring counsel.
About LL flooring
LL Flooring is among the nation’s main specialty retailers of onerous floor flooring, with greater than 300 shops nationwide. Dedicated to offering the most effective buyer expertise on-line and in-store, the corporate has greater than 500 sorts of onerous floor flooring in a variety of premium kinds and on-trend designs. LL Flooring’s on-line instruments additionally assist prospects discover the fitting resolution for the house they envision. LL Flooring’s in depth choice consists of waterproof hybrid resilient flooring, waterproof vinyl planks, strong and engineered hardwoods, laminates, bamboo, tiles and cork, in addition to a wide range of flooring enhancements and equipment, in addition to carpets in choose shops. LL Flooring shops are staffed by flooring specialists who present recommendation, specialist accomplice providers and set up choices for all LL Flooring merchandise, most of that are in inventory and prepared for supply.
forward-looking statements
Sure info on this press launch might represent “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995, together with, with out limitation, the asset buy settlement and Chapter 11 proceedings and every other statements involving us. Estimated or anticipated future outcomes might not relate solely to historic details. These statements could be recognized by phrases equivalent to “might,” “will,” “ought to,” “expects,” “intends,” “plans,” “anticipates,” “assumes,” “believes,” “believes,” “estimates” and different phrases. ”, “search”, “forecast”, “may”, “mission”, “purpose”, “potential”, “doubtless outcomes” and different related phrases and phrases are primarily based on the Firm’s beliefs as of the date of such statements , the assumptions made by administration and the data presently obtainable to the corporate’s administration. These statements are topic to dangers and uncertainties, all of that are troublesome to foretell and lots of of that are past the Firm’s management, together with the next: the outcomes of our contingency planning and restructuring actions; settlement discussions or negotiations; the Firm’s liquidity , monetary efficiency, money place and operations; the corporate’s technique; the dangers and uncertainties related to Chapter 11 proceedings; the detrimental affect on the corporate’s enterprise brought on by making use of for and working beneath Chapter 11 safety; pursuant to Chapter 363 of the U.S. Chapter Code Articles confirming the timing, phrases, and talent to promote the Firm’s enterprise; the adequacy of the capital sources for the Firm’s enterprise and the issue of predicting the liquidity wants of the Firm’s enterprise operations; the unpredictability of the Firm’s monetary efficiency throughout Chapter 11 proceedings; the Firm’s means to promote the Firm’s enterprise beneath Chapter 11 the flexibility to discharge claims in litigation; negotiations with holders of the Firm’s debt and its commerce collectors and different important collectors; the dangers and uncertainties of efficiency beneath the phrases of any preparations with lenders or collectors in a Chapter 11 continuing; the Firm’s means to discharge claims in litigation; The power to conduct enterprise as traditional; the corporate’s means to proceed to offer prospects, suppliers and different enterprise companions with a excessive stage of service and efficiency that meets their expectations of the corporate; the corporate’s means to proceed to pay workers, suppliers and distributors; The power to regulate prices throughout Chapter 11 proceedings; hostile litigation; the danger that the Firm’s Chapter 11 case could also be transformed to a Chapter 7 case; the Firm’s means to acquire working capital; the Firm’s means to make the most of alternatives to amass property with upside potential Potential; the Firm’s means to execute its strategic plan to pursue, consider and full asset gross sales of the Firm’s enterprise pursuant to Part 363 of the U.S. Chapter Code; our incapability to adjust to our monetary covenants and working obligations, which might expose us to potential defaults beneath our excellent indebtedness occasions; our means to acquire further debt or fairness financing for working capital, capital expenditures, enterprise improvement, debt service wants, acquisitions or basic company or different functions; a major discount in our short- or long-term revenues, which can end in our incapability to fulfill our operational and liquidity wants or debt repayments; and provide chain disruptions or difficulties. Readers are due to this fact cautioned to not depend on these forward-looking statements.
The Firm particularly disclaims any obligation to replace these statements, which converse solely as of the date such statements are made, besides as could also be required by federal securities legal guidelines. For a dialogue of different dangers and uncertainties that might trigger precise outcomes to vary from these contained in forward-looking statements, please see the “Threat Elements” part of the Firm’s Annual Report on Type 10-Okay for the yr ended December 31, 2023, and different paperwork filed by the corporate with the Securities and Change Fee. Such filings can be found on the SEC’s web site at www.sec.gov and the Firm’s investor relations web site at https://buyers.llflooring.com.
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