LANCASTER, Pa.– Citing continuing supply chain challenges and other pandemic-related issues, Armstrong Flooring, Inc. and three subsidiaries have filed for voluntary protection under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware as efforts continue to sell the flooring giant.
Included in the May 8 filing are AFI Licensing LLC, Armstrong Flooring Latin America, Inc. and Armstrong Flooring Canada Ltd. Armstrong Flooring noted its businesses in China and Australia are not included in the Chapter 11 filing but are part of the sale process.
In December 2021, Armstrong Flooring retained Houlihan Lokey Capital Inc. to assist with a process for the sale of the company along with the consideration of other strategic alternatives. Armstrong Flooring reported fiscal 2021 net sales of $649.9 million.
“Our business and team members have been working diligently to strengthen our financial foundation in the face of several macroeconomic trends — including supply chain challenges, the current inflationary environment and continued headwinds from the COVID-19 pandemic,” said Michel Vermette, president and CEO.
“With the support of our Board of Directors, we have determined that using the Chapter 11 process to effectuate a potential sale is the right next step for our company. As we have said previously, we firmly believe in the value and potential of Armstrong Flooring — and we are confident that this definitive action puts us in the best possible position to preserve and maximize value for our stakeholders. In the meantime, we are open for business and remain firmly committed to our customers, vendors and employees as we navigate the path forward,” he added.
In order to fund and preserve its operations during the Chapter 11 process, the company has entered into a credit agreement, subject to Bankruptcy Court approval, providing for $30 million of debtor-in-possession (DIP) financing. Armstrong Flooring said the financing will provide it with the necessary liquidity to operate and cover administrative expenses as it pursues a value-maximizing sale.
Headquartered in Lancaster, Pennsylvania, Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the design and manufacture of vinyl, LVT, rigid core and tile flooring for residential and commercial applications. The company operates seven manufacturing facilities in Pennsylvania (2), Illinois, Mississippi, Oklahoma, Australia and China.
Armstrong sold its wood flooring business in 2018 to an affiliate of American Industrial Partners for $100 million.
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