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LANCASTER, Pa. -- Armstrong Flooring -- which formerly operated a hardwood flooring plant in Beverly before selling the operation in 2018 --announced Monday that the company has filed for bankruptcy.
Armstrong Flooring sold its wood flooring division to American Industrial Partners for $100 million in November 2018. The transaction included Armstrong's six wood floor manufacturing plants, including the plant in Beverly, which is now operated by AHF Products.
Randolph County Development Authority Director Robbie Morris said that Monday's news caused some heart flutters locally until area residents realized that "Armstrong and the Beverly plant are no longer connected."
"Armstrong Flooring, that company, sold off its wood flooring division in 2018, which is what created AHF in Beverly," Morris told The Inter-Mountain Monday. "When this bankruptcy news first broke, I received some frantic calls and texts until everyone could understand that Armstrong Flooring and the Beverly plant are no longer connected. This will have zero impact on the Beverly plant."
"From what I understand, it was thought that the wood flooring division was part of the drag on company finances (for Armstrong) when they sold it off," Morris said. "Clearly, that wasn't the case, because AHF Products is doing extremely well. Sales are extremely strong. They're hiring and continuing to hire and things are going well there."
Beginning in 2019, AHF Products oversaw an 85,000-square foot expansion of the Beverly plant, which is the largest pre-finished solid hardwood flooring plant in the country.
Armstrong Flooring announced Monday that the company and some of its subsidiaries have filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
In a continuation of an ongoing sale process, the company intends to continue pursuing a sale of its business through a competitive Chapter 11 sale process. The company's businesses in China and Australia will not be included in the Chapter 11 filing, but they are part of the sale process.
"Our business and team members have been working diligently to strengthen our financial foundation in the face of several macroeconomic trends--including supply chain challenges, the current inflationary environment and continued headwinds from the COVID-19 pandemic," said Michel Vermette, President and Chief Executive Officer.
"With the support of our Board of Directors, we have determined that using the Chapter 11 process to effectuate a potential sale is the right next step for our Company. As we have said previously, we firmly believe in the value and potential of Armstrong Flooring--and we are confident that this definitive action puts us in the best possible position to preserve and maximize value for our stakeholders. In the meantime, we are open for business and remain firmly committed to our customers, vendors and employees as we navigate the path forward."
Armstrong Flooring, Inc., headquartered in Lancaster, Pennsylvania, operates seven manufacturing facilities worldwide. The company has been in business for 150 years.