LL Flooring bankruptcy: One Central Mass. location to close, one to stay open

LEOMINSTER ― LL Flooring, formerly known as Lumber Liquidators, is set to close its Leominster location as the company has filed for Chapter 11 bankruptcy , according to a statement issued by the company.

The Leominster location is in the WaterTower Plaza between Routes 2 and 12.

A store in Shrewsbury, off Route 20, is not included on the company’s list of 94 closings.

Headquartered in Richmond, Virginia, the company specializes in selling and installing different types of flooring, including wood and carpet, according to its website.

The company said slowing home sales and high interest rates have contributed to a slump in sales in the home improvement market.

LL Flooring owns more than 300 stores that will remain open, said the company.

The company said in the bankruptcy filings that it has about $131 million in outstanding gift cards, which it will stop accepting at all its locations on Sept. 4 as a part of the bankruptcy process, according to filings.

Gift cards cannot be exchanged for cash, the company said.

LL Flooring added in its announcement that it has attempted to find a buyer and is in “active negotiations” with multiple bidders.

"Today’s step,” wrote company president and CEO Charles Tyson, "is intended to provide LL Flooring with additional time and financial flexibility as we reduce our physical footprint and close certain stores while pursuing a going-concern sale of the rest of our business.”

“As we move through this process, we are committed to continuing to serve our valued customers."

The company said that it has received $130 million in Chapter 11 financing, funded through existing lenders led by Bank of America.

This article originally appeared on Telegram & Gazette: LL Flooring bankruptcy: One Central Mass. location to close, one to stay open