There are so many wannabes in the flooring business. One recent failure is the group known as Floors Today (orginally started as Laminate Kingdom.)
Very smart guys running it, but they lost their focus I guess. They were so successful in the UK and I think overall had a brilliant vision.
The operation went from zero to 60 stores in about 18 months and from 60 stores to zero stores in about 6-9 months after that.
There are alot of great people that worked there, but the model was broken.
We took a look to see if the stores were worth acquiring, but at the end of the day the baggage was far too onerous. Plus the product that was in stock didn't pass our minimum needs in terms of quality.
DON'T GET LIQUIDATED!
Recently the stores have reopened to liquidate their remaining stock for whatever price. I would be sure that you are using anything you get from them in an area that you need a low price, but don't need to worry about long term aspects of durability.
Additionally we noticed a liquidation place started selling a bunch of stuff from this chain including cheap bamboo etc... Cheap yes, quality - not so much. When we evaluated the product about 2 months ago it was not something I was willing to risk at any price. As always - BUYER BEWARE!
Some of the news about this:
Customers Getting Ticked
Staff Getting Even
Courts Getting it through Bankruptcy
From The Miami Herald:
Floors Today stumbles over growth, ends up in bankruptcy
A Miami flooring product retailer's plan to go nationwide hit a road bump, leaving a trail of creditors. The company has landed in bankruptcy court.
BY PATRICK DANNER
HYPERLINK "mailto:pdanner@MiamiHerald.com"pdanner@MiamiHerald.com
Two years ago, a European investor group launched Floors Today from Miami with the goal of creating a nationwide retailer of hardwood and laminate flooring.
Floors Today opened about 60 stores before it ran into trouble.
Last month Floors Today turned over its assets in Miami-Dade Circuit Court to a representative, Byron Smyl, who said he planned to sell the company as a going concern.
Last week, Smyl temporarily closed Floors Today's remaining 23 stores, including eight in South Florida, to save cash. A day later, three creditors initiated an involuntary bankruptcy against the chain, putting the state court on hold.
When they closed, the stores employed fewer than 200 people.
Floors Today was started in early 2005 by the management team that built Floors-2-Go into the largest retailer of hardwood and laminate flooring in Britain. They sold that business, then 102 stores, for about $65 million, Smyl said.
It has 140 stores today, according to its website.
A supplier later approached the team -- led by Robert Hodges and sons Robert and Richard -- about launching a similar retail chain in the United States.
Floors Today planned to follow Floors-2-Go's growth model and open as many as 300 stores, all in rapid succession, in the United States, according to an outline filed with a 2005 lawsuit against Floors Today by a consultant firm. The case was later dismissed.
According to court documents in a 2006 lawsuit against Floors Today filed by a former employee, it opened about 60 stores with estimated annual sales of $70 million. That lawsuit also was dismissed.
Smyl said Floors Today got pinched by the downturn in the housing industry, though he added he hasn't analyzed what was behind the company's problems.
Creditors' lawyer Gary Freedman said it appears Floors Today overexpanded and ran into cash-flow problems.
Lawsuits filed by suppliers and others against Floors Today, whose parent company is Laminate Kingdom, began piling up early last year.
Some even took the step of filing writs of garnishment, seeking money in Floors Today's bank accounts.
With the number of creditors mounting, Floors Today filed the assignment for the benefit of creditors. The filing lists more than 650 creditors -- owed at least $19 million.
At the time of the filing, Floors Today had 37 stores remaining in four states. Fourteen stores were immediately closed before the decision was made to temporarily close the remaining 23 stores.
Freedman filed the involuntary bankruptcy to maneuver the case into U.S. Bankruptcy Court where, he said, creditors have greater say.
He said before the state court action, the Hodges were provided a security interest valued at $320,000. Creditors can seek to void any garnishments and other transactions in the 90 days leading up to the bankruptcy, he said.
The involuntary bankruptcy was filed by three media companies, including The Miami Herald Media Co. Freedman said he will ask the court to appoint a trustee to oversee the business while it is in bankruptcy. A hearing on that request is set for Wednesday.
In the meantime, Smyl said everyone is in a wait-and-see position.
''Everybody's hoping the stores can come back and the company can be restructured,'' Smyl said
copyright Miami Herald