LL Flooring has signed an agreement with F9 Investments, a firm run by Thomas Sullivan, who founded LL as Lumber Liquidators 30 years ago, for a going-concern sale of the business. Under the terms of the asset purchase agreement, F9 Investments will acquire 219 of 430 stores, inventory in those stores, and the company’s Sandston, Virginia, distribution center, LL Flooring’s intellectual property, and other company assets.

According to investopedia.com: Going-concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy. 
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The transaction is expected to be completed by the end of September, subject to approval by the Bankruptcy Court and other closing conditions.

Charles Tyson, president and CEO of LL Flooring, said, “We are pleased to have reached this agreement with F9 Investments for a going-concern sale following significant efforts by our team and advisors to preserve the business and maintain ongoing operations. As we move through the court-supervised process toward the approval and completion of this transaction, we remain committed to continuing to serve our valued customers and working closely with our vendors and partners. I continue to be appreciative of the ongoing focus and efforts of our associates to provide the best experience for our customers.”

As previously communicated, prior to entering the Chapter 11 process, the company conducted extensive marketing processes with respect to its business and certain of its assets. The marketing process garnered significant interest, and LL Flooring has used the Chapter 11 proceedings to continue pursuing a going-concern sale of its business under the Bankruptcy Code.

While the company had filed materials with the Bankruptcy Court on August 30, 2024, regarding the intent to pivot to a full liquidation of the business, the company was able to subsequently reach the asset purchase agreement with F9 Investments that will maintain the business as a going-concern, pending approval by the Bankruptcy Court.