Home Depot rival files for Chapter 11 bankruptcy to sell assets | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The home improvement industry benefited from an increase in business generated by do-it-yourself consumers in 2020 during the Covid-19 pandemic, which was short-lived as sales plummeted when the pandemic subsided.

Once homeowners returned to their jobs and other activities, and no longer had time on their hands for home improvement projects, home improvement retailers experienced a decline in sales.

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Economic issues have continued, as several home improvement retailers faced financial distress and bankruptcy filings over the last year as they navigated rising labor and product costs driven by inflation, rising interest rates, and negative effects from increased tariffs on imported goods.

Home improvement retailer LL Flooring on Aug. 11, 2024, filed for Chapter 11 bankruptcy protection seeking a sale of its assets, after suffering from headwinds in the housing, repair, and remodeling markets that occurred when the Covid pandemic subsided, court papers said.

LL Flooring agreed to a sale of its assets and distribution center to a subsidiary of private equity firm F9 Investments for a purchase price including a $1 million fixed amount, an inventory price of 57% of landed cost value of acquired inventory, and assumed cure costs.

Home improvement companies file for bankruptcy

Inflation and supply chain issues from the Covid pandemic caused cost overruns of $30 million, as well as unexpected engineering problems, for TimberHP’s construction and retrofitting of a former Madison, Maine, paper mill into the company’s new wood fiber insulation manufacturing plant.

The company’s owner GoLab, which distributes TimberBatt, TimberFill, and TimberBoard wood fiber insulation products, was forced to file for Chapter 11 bankruptcy to reorganize its debts on March 25, 2025, in the U.S. Bankruptcy Court for the District of Delaware.

The parent company of home improvement retailer Gardener’s Supply Company filed for Chapter 11 bankruptcy protection on June 20, seeking to sell its assets to a stalking-horse bidder as it faces financial distress.

Gardener’s Supply’s parent and the lead debtor, America’s Gardening Resource Inc., and four affiliates Gardener’s Home LLC, Innovative Gardening Solutions Inc., IGH Inc., and Serac Corporation, listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in their petition.

The debtor is 100% owned by an employee stock ownership plan.

The home improvement company files for Chapter 11 bankruptcy to sell its assets.

Image source&colon; Getty/TheStreet

Mosaic Companies files for bankruptcy protection

Finally, Home improvement retail and wholesale company Mosaic Companies LLC filed for Chapter 11 bankruptcy with plans to sell certain of its assets and wind down and liquidate other remaining businesses.

The Smyrna, Ga.-based debtor and nine affiliates filed their petition in the U.S. Bankruptcy Court for the District of Delaware on July 8, listing $10 million to $50 million in assets and $100 million to $500 million in debts, which includes $65 million in secured funded debt.

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The debtor’s largest unsecured creditors include import supplier Tile Matrix LLV, owed over $298,000; import supplier Deltaker S.A., owed over $252,000; and landlord Terreno Middlebrooke LLC, owed over $238,000 in rent.

Mosaic, founded in 2019, is a home improvement products leader in the surfaces industry for luxury wall and mosaic tile, floor tile, and stone slab to their retail and wholesale customers. The company currently operates through subsidiaries Walker & Zanger LLC and Surfaces Southeast LLC.

Walker Zanger operates 11 showrooms and stone slab galleries across the nation, with locations in California, Texas, North Carolina, and New York. The company also works with 100s of authorized dealers nationwide to serve major U.S. metro areas, and distributes its products to other bath and kitchen design showrooms under its Walker Zanger and Anthology brands.

Surfaces, a designer and value-added distributor of mosaic and specialty wall tiles, exclusively services commercial customers, such as Floor & Decor and Lowe’s Home Improvement.

Mosaic on April 8, 2025, sold its affiliate Opustone LLC, an importer and distributor of natural and engineered stone and tile with three Florida showrooms, to an affiliate of Home Depot in a $93.15 million stock sale.

The debtor plans to sell its Walker Zanger and Anthology tile business assets in a bankruptcy sale to Transom Capital Group for a $17.5 million cash bid plus assumption of certain liabilities. Any remaining assets, such as the Surfaces Southeast wholesale and distribution business, will be marketed for sale and will be liquidated if the debtor is unable to sell it.

The debtor will seek approval to obtain $15 million in debtor-in-possession financing from Truist, according to the declaration.