Beaulieu Group Files for Chapter 11 Bankruptcy Protection
One of the biggest and most-renowned flooring companies in America, Beaulieu Group LLC, has filed for Chapter 11 bankruptcy protection in a U.S. bankruptcy court.
The Dalton, Georgia-based flooring giant has opted for Chapter 11 bankruptcy in hopes of restructuring its debt. Beaulieu Group has been struggling with a heavy debt burden, so it sought the bankruptcy court’s protection in order to stay afloat.
According to the bankruptcy filing, Beaulieu Group currently owes between $50.0 million and $100.0 million to its creditors.
In an official press release, the company indicated that it has managed to receive financing from some lenders, which will help the company continue its operations for now.
Under the debtor-in-possession (DIP) financing that the company has received, Beaulieu Group’s management will be retaining control of the business, over which the lenders will hold a lien until the debt is paid off.
Beaulieu Group will be combining the DIP funds with cash from its flooring business in order to continue its daily operations.
Following the bankruptcy filing, the president of Beaulieu Group, Michael Pollard, justified the move, saying that the management team evaluated all options before seeking Chapter 11 bankruptcy. Pollard says management’s choice to restructure the business will best position the flooring company for “future success.”
Pollard said in a press release, “This restructuring will allow us to invest in the business going forward and emerge a stronger organization. We remain steadfast in our commitment to our customers and employees throughout this process. I am confident that we have the talented and committed team capable of executing the reorganization plan. We appreciate the support of our vendors and customers as we move through this process.”
Beaulieu Group is a family-owned private business that has been operating for four decades. The company is mostly known for manufacturing and distributing wall-to-wall carpets. However, the carpet business has seen a decline as consumer interests shift toward hard flooring, like laminate, vinyl and hardwood.
The company competes with other flooring giants, such as Mohawk Flooring, (otherwise known as Mohawk Industries, Inc.) and Shaw Floors (otherwise known as Shaw Industries Group, Inc.). Having witnessed stiff competition from its rivals, Beaulieu’s management team has changed its business model to adapt to the changing industry trends and demands of its clients.
Beaulieu Group’s product portfolio includes carpets, engineered hardwood, laminate, and luxury vinyl flooring.
“Beaulieu Group LLC Commences Restructuring,” PR Newswire, July 17, 2017.
“One of America’s biggest carpet makers files for bankruptcy,” Times Free Press, July 17, 2017.