IFloor seeks Chapter 11 protection
IFloor, a multi-channel flooring retailer, said it has filed a petition for protection under Chapter 11 of the United States Bankruptcy Code. The bankruptcy was filed in Seattle. Under Chapter 11, the company will undertake the orderly administration of its assets and creditor claims.
The company said it has been adversely affected by a rapidly deteriorating macroeconomic environment. The company cited statistics that housing starts reached a 17-year low in September and the Harvard Joint Center for Housing Studies expects remodeling expenditures to further deteriorate after dropping almost 13 percent year-over-year in the second quarter.
In recent months, the company made an intensive effort to rationalize its supply base, reduce operating expenses and explore new funding sources. After reviewing all options, the company's Board of Directors determined that it would be in the best interest of iFloor's stakeholders to file for Chapter 11.