Bankrupt US flooring retailer LL Flooring is to sell its distribution center outside Richmond, Virginia. Data center firm QTS has been linked as the buyer.
As reported by VirginiaBusiness, LL Flooring has sold its eastern Henrico County distribution center to a limited liability company for $104.75 million.
According to a filing with the SEC, LL Flooring has entered into a Purchase and Sale Agreement with SNA NE, LLC for the sale of the company’s distribution center in Sandston, Virginia.
Situated on a 97.55-acre plot within the White Oak Technology Park, the site houses a 995,790-square-foot (92,510 sqm) distribution building. The building, located at 6115 Technology Creek Drive, is adjacent to QTS' Richmond data center campus.
Founded in 1994, LL Flooring (formerly Lumber Liquidators Flooring) sold flooring from 300 locations nationwide. However, the company filed for bankruptcy last month.
While it initially planned to close 94 stores and work towards selling the business, the company has since said it now intends to completely wind down the business and expects all stores to be closed within 12 weeks.
A JLL document suggests the site was subject to nine bids. The winning bidder, SNA, is described as "the largest land owner in the White Oak Technology Park," which would match QTS.
VirginiaBusiness also reports that QTS CEO, Chad Williams, signed a document filed with the US Bankruptcy Court as CEO of SNA NE LLC.
The deal is structured as a sale-leaseback with the potential for LL Flooring to lease the site for up to two years, but with the company now being liquidated it's likely the length of the lease will be curtailed.
LL Flooring and QTS declined to comment to VirginiaBusiness.
