LL Flooring Receives NYSE Notice of Delisting

Rhea-AI Summary

LL Flooring Holdings, Inc. (NYSE: LL) has received notice from the New York Stock Exchange (NYSE) that its common stock will be delisted and trading suspended immediately. This decision follows the company's voluntary filing for Chapter 11 bankruptcy protection on August 12, 2024. The NYSE determined that LL Flooring no longer meets the listing criteria outlined in Section 802.01D of the NYSE Listed Company Manual.

LL Flooring does not plan to appeal this decision, and the delisting process will proceed once all applicable procedures are completed. Despite the NYSE delisting, the company's stock is expected to continue trading on the OTC market under the symbol "LLFLQ".

Positive

• The company's stock is expected to continue trading on the OTC market, providing some liquidity for shareholders

Negative

• LL Flooring filed for Chapter 11 bankruptcy protection
• The company's stock will be delisted from the NYSE
• Trading of LL stock on NYSE will be suspended immediately
• The company does not intend to appeal the NYSE's delisting decision

Insights

Financial Analyst

The NYSE's decision to delist LL Flooring is a significant blow to the company's market presence and investor confidence. This move, triggered by the Chapter 11 bankruptcy filing, signals severe financial distress. Delisting often leads to reduced liquidity, access to capital and potential loss of institutional investors. The transition to OTC markets typically results in increased volatility and wider bid-ask spreads, making the stock less attractive to mainstream investors. This development underscores the gravity of LL Flooring's financial situation and suggests a challenging road ahead for the company's restructuring efforts and potential recovery.

Legal Expert

The Chapter 11 filing and subsequent NYSE delisting highlight significant legal and financial challenges for LL Flooring. The bankruptcy process will likely involve complex negotiations with creditors, potentially leading to debt restructuring or asset sales. Shareholders should be aware that their interests often take a back seat in such proceedings, with a high risk of substantial or total loss of equity value. The company's decision not to appeal the NYSE's determination suggests a focus on the bankruptcy process rather than maintaining its listing status. Investors should closely monitor the bankruptcy court proceedings and any restructuring plans that emerge, as these will be critical in determining the company's future and any potential recovery for stakeholders.

Market Research Analyst

LL Flooring's delisting from the NYSE reflects broader challenges in the home improvement sector. The company's financial struggles likely stem from a combination of factors, including changing consumer preferences, increased competition from big-box retailers and e-commerce platforms and recent economic headwinds affecting discretionary spending. This situation serves as a cautionary tale for investors in the retail sector, particularly those focused on specialized home improvement niches. It underscores the importance of adaptability and strong financial management in a rapidly evolving retail landscape. For the broader market, this event may prompt increased scrutiny of other players in the home improvement and specialty retail segments, potentially affecting investor sentiment in these areas.

08/13/2024 - 04:35 PM

RICHMOND, Va.--(BUSINESS WIRE)-- LL Flooring Holdings, Inc. (“LL Flooring” or the “Company”) (NYSE: LL), today announced that the Company was informed on August 12, 2024 by the New York Stock Exchange (“NYSE”) that based on the Company’s and certain of its direct and indirect subsidiaries’ voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Chapter 11 proceedings”), the staff of NYSE Regulation determined that the Company is no longer suitable for listing pursuant to the NYSE Listed Company Manual Section 802.01D, and accordingly, determined to commence proceedings to delist the common stock of the Company from the NYSE and suspend trading in the Company’s common stock immediately.

The NYSE will apply to the Securities and Exchange Commission (the “SEC”) to delist the Company’s common stock upon completion of all applicable procedures. The Company does not intend to appeal the NYSE’s determination and therefore expects that its common stock will be delisted from the NYSE.

The Company’s common stock is expected to continue trading on the OTC market under the symbol “LLFLQ.”

About LL Flooring

LL Flooring is one of the country’s leading specialty retailers of hard-surface flooring with more than 300 stores nationwide. The Company seeks to offer the best customer experience online and in stores, with more than 500 varieties of hard-surface floors featuring a range of quality styles and on-trend designs. LL Flooring’s online tools also help empower customers to find the right solution for the space they’ve envisioned. LL Flooring’s extensive selection includes waterproof hybrid resilient, waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement, as well as carpet in select stores. LL Flooring stores are staffed with flooring experts who provide advice, Pro partnership services and installation options for all of LL Flooring’s products, the majority of which is in stock and ready for delivery.

Forward Looking Statements

Certain information in this press release may constitute “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, including but not limited to, the NYSE delisting proceedings, the Chapter 11 proceedings and any other statements that refer to our expected, estimated or anticipated future results or that do not relate solely to historical facts. These statements, which may be identified by words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “assumes,” “believes,” “thinks,” “estimates,” “seeks,” “predicts,” “could,” “projects,” “targets,” “potential,” “will likely result,” and other similar terms and phrases, are based on the beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company’s management as of the date of such statements. These statements are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company’s control, including, among other things, the following: the outcome of our contingency planning and restructuring activities; settlement discussions or negotiations; the Company’s liquidity, financial performance, cash position and operations; the Company’s strategy; risks and uncertainties associated with Chapter 11 proceedings; the negative impacts on the Company’s businesses as a result of filing for and operating under Chapter 11 protection; the time, terms and ability to confirm a sale of the Company’s businesses under Section 363 of the U.S. Bankruptcy Code; the adequacy of the capital resources of the Company’s businesses and the difficulty in forecasting the liquidity requirements of the operations of the Company’s businesses; the unpredictability of the Company’s financial results while in Chapter 11 proceedings; the Company’s ability to discharge claims in Chapter 11 proceedings; negotiations with the holders of the Company’s indebtedness and its trade creditors and other significant creditors; risks and uncertainties with performing under the terms of any arrangement with lenders or creditors while in Chapter 11 proceedings; the Company’s ability to conduct business as usual; the Company’s ability to continue to serve customers, suppliers and other business partners at the high level of service and performance they have come to expect from the Company; the Company’s ability to continue to pay employees, suppliers and vendors; the ability to control costs during Chapter 11 proceedings; adverse litigation; the risk that the Company’s Chapter 11 cases may be converted to cases under Chapter 7 of the Bankruptcy Code; the Company’s ability to secure operating capital; the Company’s ability to take advantage of opportunities to acquire assets with upside potential; the Company’s ability to execute on its strategic plan to pursue, evaluate and close an asset sale of the Company’s businesses pursuant to Section 363 of the U.S. Bankruptcy Code; our inability to maintain compliance with financial covenants and operating obligations which would expose us to potential events of default under our outstanding indebtedness; our ability to incur additional debt or equity financing for working capital, capital expenditures, business development, debt service requirements, acquisitions or general corporate or other purposes; a significant reduction in our short-term or long-term revenues which could cause us to be unable to fund our operations and liquidity needs or repay indebtedness; and supply chain interruptions or difficulties. Therefore, the reader is cautioned not to rely on these forward-looking statements.

The Company specifically disclaims any obligation to update these statements, which speak only as of the dates on which such statements are made, except as may be required under the federal securities laws. For a discussion of other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended December 31, 2023, and the Company’s other filings with the SEC. Such filings are available on the SEC’s website at www.sec.gov and the Company’s Investor Relations website at https://investors.llflooring.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240813325783/en/

For media inquiries:

Leigh Parrish / Ed Trissel / Spencer Hoffman

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Source: LL Flooring Holdings, Inc.

FAQ

Why is LL Flooring (LL) being delisted from the NYSE?

LL Flooring is being delisted from the NYSE due to its voluntary filing for Chapter 11 bankruptcy protection on August 12, 2024, which made it no longer suitable for listing according to NYSE regulations.

Will LL Flooring (LL) stock continue to trade after NYSE delisting?

Yes, LL Flooring stock is expected to continue trading on the OTC market under the new symbol "LLFLQ" after being delisted from the NYSE.

When will LL Flooring (LL) stock be suspended from trading on the NYSE?

Trading of LL Flooring stock on the NYSE will be suspended immediately following the delisting notice received on August 12, 2024.

Is LL Flooring (LL) appealing the NYSE's decision to delist its stock?

No, LL Flooring does not intend to appeal the NYSE's determination to delist its common stock.