Posted July 19, 2017

 

DALTON, Ga. – Beaulieu Group LLC, a family-owned flooring company, announced that it has commenced a formal proceeding to restructure its balance sheet to better position itself for the future. 

 

To facilitate this restructuring, the company filed voluntary petitions under Chapter 11 in the United States Bankruptcy Court for the Northern District of Georgia, Rome Division.  

 

The company's existing lenders have agreed to continue to support the company by providing debtor-in-possession (DIP) financing that will be combined with its cash from operations to ensure and support continued business operations.

 

“Beaulieu family members and our board of managers believe pursuing a restructuring through Chapter 11 is the best path forward at this time,” said Michael Pollard, president of Beaulieu Group LLC. “We have evaluated alternatives to address Beaulieu’s capital structure, and believe that restructuring through the chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success.

 

“This is a necessary process as we continue to execute our long-term strategic plans for the business,” Pollard continued. “Our business model has changed with the industry and our client base since our current capital structure was put into place. 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.”

 

The company has a 40-year legacy of providing innovative solutions to the flooring industry.

 

Beaulieu has been in the process of diversifying its product range into LVT (luxury vinyl tile) and hardwood, according to Alasdair Carmichael of PCI Wood Mackenzie said in his News Update to members of the Synthetic Yarn and Fabric Association (SYFA).

 

“At the same time it has been reducing its exposure to carpet and recently sold its Bridgeport, Ala., extrusion and yarn processing plant to Mohawk,” Carmichael wrote. “Recent carpet product launches have been focused more on nylon 6 and branded polyester rather than the entry-level polyester that had been a mainstay previously.

 

“The LVT market is the fastest-growing floorcovering segment, so there is good logic in entering it,” he continued. “However, others are doing the same with Shaw and Mohawk particularly increasing capacity to threaten the leadership positions of Armstrong and Mannington. Beaulieu will have to work hard for every percentage point gain in market share.”

 

Sources: Beaulieu Group, LLC and eTC reports