Houston, TX- After filing for Chapter 11 bankruptcy, LL Flooring, which used to be called Lumber Liquidators, has started closing sales at 94 of its stores across the country.
According to the Houston Chronicle, stores in Houston and Katy are among those that will be closed. These are part of a bigger group of 11 stores that will be closed in both California and Texas.
Not all Texas shops are closing, though. For now, places like the ones in Northwest Houston and League City will still be open.
According to a statement from the company’s president and CEO, Charles Tyson, LL Flooring hopes to get more time and financial freedom through the bankruptcy protection it filed in Delaware.
After a 2015 “60 Minutes” report said the company sold flooring with unsafe 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. This caused major problems for the retailer’s credibility and ability to do business, as reported by The Houston Chronicle.
CBS News gave a full account of the company’s plans after filing, and they brought up the strange fact that while LL Flooring’s financial advisors were deciding which stores to close, they also suggested which ones should stay open.
Even though some stores have closed, more than 300 LL Flooring shops across the US are still trying to keep their customers. The business is still open for business online.
Stores that are closing will stay open long enough to sell or transfer any leftover stock. In its Chapter 11 filing, the company said that gift cards would no longer be taken after September 3. According to court documents, the value of the gift cards still out there is about $131 million.
“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 Chronicle. Reports say that the end goal for LL Flooring during this chaos is still to sell the business.
Click Here for the list of impacted areas.