Armstrong Fails to Find Buyer, Pushes Deadline to May 8
Lancaster, PA, May 3, 2022-Armstrong Flooring told investors this morning it is likely to file for bankruptcy after it failed to find a buyer, reports Lancaster Online.
“Armstrong Flooring faced a deadline [May 2] to enter into a definitive binding purchase agreement, merger agreement or other similar agreement.
“Armstrong employs about 500 [in Lancaster].
“The company said there are interested buyers, but it was not able to complete a deal. It now has a May 8 deadline.”
Says Armstrong, "Armstrong Flooring has received an extension from our lenders on our credit amendments until May 8 to evaluate the best path forward for the business. While there has been no definitive decision made on how we will move forward, we are considering all available options, including seeking protection to execute a transaction through the Chapter 11 process. Armstrong Flooring is open for business and is operating as usual."
According to the 8K Armstrong filed May 2, the board has appointed a chief transformation officer (CTO) named Dalton Edgecomb.
Edgecomb has been a senior managing director of Riveron Consulting, a national business advisory firm specializing in accounting, finance, and operations, since November of 2020. From January 2012 through November 2020, Edgecomb was a member and managing director of Winter Harbor, a provider of restructuring and turnaround services. Edgecomb specializes in advising companies and their officers and directors in restructuring situations, as well as serving in interim management roles such as chief transformation officer, chief restructuring officer, chief executive officer, and chief financial officer.
The company agreed to pay Riveron $815 per hour for Edgecomb’s services as CTO.
MarketWatch yesterday reported, “Armstrong Flooring Inc. stock plunged 75% and hit a new 52-week low after the company warned it will likely seek bankruptcy protection unless it can reach a deal to sell itself by next week.”
Related Topics:Armstrong Flooring