After asserting that it would liquidate because no buyer could be found, LL Flooring on Sept. 6 altered course and signed an agreement with F9 Investments, its largest shareholder, for a going-concern sale of the business.
Per the agreement, which is expected to close by the end of the month, F9 Investments will acquire 219 stores and their inventory, a distribution center in Sandston, Va., plus LL Flooring’s intellectual property and other assets. The stores will revert to their original name, Lumber Liquidators.
In a statement, Charles Tyson, LL Flooring president and CEO, said the company was “pleased to have reached this agreement” with F9 “following significant efforts by our team and advisors to preserve the business.” He added that LL Flooring remains “committed to continuing to serve” customers and vendors as the transaction moves through bankruptcy court for approval.
To refresh your memory, F9 Inv e s t m e n t s is owned by Tom Sullivan, who founded Lumber Liquidators more than 30 years ago. “We’ll be getting back to basics,” he said. “Basically, yellow and black is coming back…We know what worked before. It’s not fancy offices in Richmond [Va.] with 200 people who didn’t know the flooring business. It’s great people in our stores who know flooring and customers who want a great deal and know Lumber Liquidators is the place to go.”
Sullivan explained that the company plans to narrow down to a more “manageable” selection of flooring options and get rid of material that feels duplicative or doesn’t sell well, so customers will likely see big discounts on much of the inventory left behind from LL Flooring’s bankruptcy process. He added that the company will be closely aligned with Cabinets To Go, another F9-owned brand that he founded, to help with shipping.
While LL Flooring was in Chapter 11 and considering liquidation, sales associates from various stores began applying for jobs with specialty flooring dealers. Loudoun Valley Floors, Purcellville, Va., for example, hired a former LL Flooring sales associate just prior to the liquidation announcement, and FCA Network’s management team said it was speaking with a few ex-LL employees as well.
Carpetland USA’s Eric Langan instructed his store managers to visit LL Flooring locations in Iowa and Illinois to see if there was any “quality talent there. We’re always on the lookout, especially for those who have flooring experience.”
