You know that feeling when you’re mid-project, ready to lay down that new flooring, and your go-to store starts looking shaky? Yeah, it’s happening. A major Home Depot rival just hit a rough patch, and if you’re planning a renovation, you need to know what’s up. This isn’t just corporate drama—it’s about where you’ll shop, what you’ll pay, and how you tackle that weekend project.
We’re breaking down exactly what this means for you. No fluff, just the straight talk on store closures, your gift cards, and where to go next. Because your time—and your floors—deserve better than a headache.
Why This Home Depot Rival Files For Bankruptcy Chapter 11
Let’s get real. LL Flooring, formerly Lumber Liquidators, has been on a rocky road for a minute. The company took on heavy debt to grow fast, and when interest rates climbed, that debt turned into a monster. By mid-2024, their stock had dropped 86%, while Home Depot actually grew by 4% during the same stretch. That gap tells the whole story.
It’s not just debt, though. People are pulling back on massive renovations. Sales dropped 22% in Q1 2024, with an operating loss of $28 million. You’re probably opting for a fresh coat of paint over a full kitchen gut job—and so is everyone else. That shift hits flooring specialists harder than the big-box giants.
What Chapter 11 Actually Means for You
When a Home Depot rival files for bankruptcy Chapter 11, it’s not an automatic going-out-of-business sale. Chapter 11 is a restructuring move. Think of it as hitting pause to figure out a game plan. LL Flooring is aiming to wipe out between $100 million and $500 million in liabilities while keeping assets valued at up to $1 billion.
So what does that look like on the ground? The company secured $130 million in emergency financing from Bank of America to keep the lights on at remaining stores. But they’re also closing 94 locations immediately. That means fewer places to browse in person, but also some solid deals if you act fast.
List of Store Closures: Is Your Spot on the List?
If you’ve got an LL Flooring nearby, you’ll want to check if it’s one of the ones shutting down. The closures are spread across the country, and they’re hitting major metro areas hard. For example, California stores in San Jose, Tustin, and Pasadena are on the chopping block. In New York, the Rego Park and Bronx locations are closing. Florida’s North Miami spot? Gone. New Jersey’s Middletown and Princeton stores? Also out.
A full list is available on the company’s bankruptcy case website. If your local store is closing, liquidation sales are already underway. That means deep discounts on flooring inventory—but also a ticking clock before that location is gone for good.
How This Affects Your Wallet and Your Project
Gift Cards & Warranties – Good news here. The company has stated that gift cards and warranties will still be honored during restructuring. So if you’ve got a card sitting in your drawer, you’re safe for now. But don’t sit on it too long—things can change if a buyer doesn’t step in.
Clearance Sales – Closing stores are offering serious discounts. If you’ve been eyeing hardwood or vinyl plank, now might be the time to grab it. Just remember: inventory is final sale, so measure twice and buy once.
Fewer Physical Locations – Some areas will lose access entirely. That means more reliance on online ordering or shifting to competitors like Floor & Decor or Home Depot. If you like seeing and touching materials before you buy, this change stings.
The Bigger Picture: It’s Not Just One Store
When a Home Depot rival files for bankruptcy Chapter 11, it’s often a symptom of something larger. LL Flooring isn’t alone in the struggle. Big Lots is closing 25% of its stores. Conn’s HomePlus is liquidating entirely. Mitchell Gold + Bob Williams went bankrupt in 2023. The post-pandemic home renovation boom has cooled off, and high interest rates are squeezing everyone.
This matters because fewer players mean less competition. And less competition can mean higher prices or fewer options for you. The big guys—Home Depot and Lowe’s—have the scale to weather the storm. Their focus on Pro customers gives them a steady stream of business even when DIY spending dips.
What Happens Next for LL Flooring?
The company is currently negotiating with multiple bidders, hoping for a going-concern sale by late August 2024. If a buyer emerges—possibly a private equity firm or even founder Tom Sullivan through his F9 Investments group—the brand could survive in a smaller, restructured form. Sullivan has even hinted at reviving the old Lumber Liquidators name if he regains control.
If no buyer steps in, liquidation becomes the next step. That would mean all stores close, and the brand disappears—following the same path as Bed Bath & Beyond. The August 26, 2024, deadline is the one to watch. After that, we’ll know if this is a comeback story or a final goodbye.
Your Game Plan: How to Shop Smart Right Now
Check Your Local Store – Find out if your nearby LL Flooring is closing. If it is, hit the liquidation sales early for the best selection. If it’s staying open, you still have time to use gift cards and warranties.
Compare Competitors – Floor & Decor is a strong alternative for flooring specialists. Home Depot and Lowe’s offer broader selections and Pro desks that can help with bulk orders. Don’t sleep on local lumber yards either—they often have better service and competitive pricing.
Time Your Purchases – If you’re planning a flooring project soon, buy materials before inventory gets scattered. Restructuring can cause supply chain hiccups, and you don’t want to be stuck waiting on backorders when you’re ready to install.
FAQs
Will LL Flooring stores stay open?
Yes, but only about 206 locations will remain after the 94 closures. The rest are shutting down, so check your local spot.
Can I still use my LL Flooring gift card?
Yes. The company says gift cards and warranties will be honored during the restructuring process.
What happens to LL Flooring employees?
Workers at closing stores face layoffs. Most other employees will keep their jobs for now, but the future depends on whether a buyer steps in.
Is LL Flooring the same as Lumber Liquidators?
Yep. The company rebranded in 2021 after a formaldehyde scandal in 2015. Same roots, new name.
Could Home Depot buy LL Flooring?
Unlikely. Home Depot is focused on organic growth and serving Pro customers rather than scooping up distressed rivals.
Final Thoughts
When a Home Depot rival files for bankruptcy Chapter 11, it’s easy to scroll past like it’s just business news. But for anyone with a renovation on the horizon, it’s a real signal to pay attention. Your go-to flooring source might shrink. Your local store might vanish. But that also means clearance deals worth grabbing—if you know where to look.
Keep your options open. Check out Floor & Decor, compare prices at Home Depot, and don’t forget about local suppliers. The industry is shifting, but your project doesn’t have to suffer. Stay flexible, shop smart, and you’ll still get that floor done right.
Got a flooring project coming up? Drop a comment below or tag us on social—we’d love to hear what you’re working on. And if you spot a killer deal at a closing LL Flooring, let the crew know. Sharing is caring, especially when it saves everyone a few bucks.
