LL Flooring has entered Chapter 11 bankruptcy and is planning to pursue a going-concern sale of its business.

The company has initiated the closing process of 94 stores and signed with Hilco Merchant Resources to carry out closing sales at these locations. Operations will continue at the remaining 300-plus stores and online, with few changes to store operations and policies. 

The flooring retailer has also conducted marketing processes with respect to its business and certain assets and is now in negotiations with multiple bidders.

In addition, the company has received a commitment for debtor-in-possession financing of up to $130 million from its bank group led by Bank of America. 

President and CEO Charles Tyson said the Chapter 11 filing is “the best path forward” in a challenging macro environment.

“Today’s step 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,” Tyson added.

LL Flooring saw an 18.5 per cent sales slump in the last fiscal year, with net loss widening to more than $103 million.