LL Flooring Signs Agreement with F9 Investments for Sale of Going concern Page 1

LL Flooring Holdings, Inc. (“LL Flooring” or the “Company”) (OTC Pink: LLFLQ), today announced that, as part of the Company’s ongoing Chapter 11 process, the Company has signed an agreement with F9 Investments for a going-concern sale of the business. Under the terms of the asset purchase agreement, F9 Investments will acquire 219 stores, inventory in those stores and the Company’s distribution center in Sandston, Virginia, LL Flooring intellectual property and other assets of the Company. The transaction is expected to close in late September, subject to bankruptcy court approval and other closing conditions.

Charles Tyson, President and Chief Executive Officer of LL Flooring, said, “We are pleased to have reached this agreement with F9 Investments for a going-concern sale after significant efforts by our team and advisors to preserve the business and maintain ongoing operations. As we move through the court-supervised process toward approval and completion of this transaction, we remain committed to continuing to serve our valued customers and working closely with our suppliers and partners. I continue to appreciate the continued focus and efforts of our employees to provide the best experience for our customers.”

As previously communicated, prior to entering the Chapter 11 process, the Company engaged in extensive marketing processes with respect to its business and certain assets. The marketing process attracted significant interest and the Company has utilized the Chapter 11 proceedings to pursue a going concern sale of its business under the bankruptcy code. Although the Company filed materials with the Bankruptcy Court on August 30, 2024 regarding its intention to move toward a complete liquidation of the Company, the Company was subsequently able to reach the Asset Purchase Agreement with F9 Investments that will maintain the Company as a going concern, pending approval by the Bankruptcy Court.

During the Chapter 11 process and as the Company works to complete the going-concern sale of the business, LL Flooring will continue to operate generally as normal and remains focused on providing customers with a wide variety of hard and soft flooring surfaces and an exceptional shopping experience. The 219 ongoing stores included in the asset purchase agreement, along with the Company’s online platform, are open and continue to serve customers with few changes to store operations and policies.