The bankrupt company formerly known as Lumber Liquidators plans to avoid liquidating itself through a deal with the founder's private equity firm.
Richmond, Virginia-based LL Flooring, which late last month said it would sell off its assets and close all its stores, has instead struck a last-minute deal for a "going-concern sale" to F9 Investments.
Miami-based F9 is led by Thomas Sullivan, who founded Lumber Liquidators in 1994, Washington, DC-area radio station WTOP reported Monday.
Under the terms of the deal, F9 will pay an unspecified amount to acquire and run 219 LL Flooring stores, along with the company's inventory, website, distribution center in Sandston, Virginia, and other assets.
"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," LL Flooring CEO Charles Tyson said in a statement late Friday.
The deal is expected to save thousands of jobs, WTOP said.
LL Flooring filed for Chapter 11 bankruptcy protection on August 11 and began a voluntary reorganization that involved going-out-of-business sales at 94 stores before switching to a full liquidation plan on Aug. 30.
The sale to F9 is subject to Bankruptcy Court approval and both sides hope to have it wrapped up by the end of September, according to Friday's announcement.
LL Flooring's stock was trading early Monday at 1.5 cents a share, down from $3.83 at the start of the year and an all-time high of $119.44 in November 2013.
