Menu
On May 8, 2022, Armstrong Flooring files bankruptcy. It reports it owed creditors $317.8 million and had assets worth $517 million.
Armstrong Flooring was spun out of Armstrong World Industries, which exited bankruptcy in 2006 after winning court approval for a plan to deal with lawsuits related to asbestos. The substance can cause fatal lung diseases including cancer. Armstrong Flooring became a separate, publicly traded company in 2016.
Why, as one of the leading Sheet vinyl flooring and woven vinyl flooring manufacturers in the USA will go bankrupt today. Today we will talk about the reasons of bankruptcy, the current solutions they are choosing; and other sheet vinyl flooring company that can be Armstrong Flooring replacement.
It’s an in-depth article that takes 15 minutes to read.
Navigation, click to jump to the section you want to read
Rising transportation cost: due to COVID-19 Pandemic, both USA domestic transportation cost and international shipping cost increase a lot.
For international sea freight shipping cost, it is 5 times more than the time before Pandemic.
For USA truck rates, it went up 65% before pandemic.
Rising supply chain cost: The product cost from both Armstrong Flooring’s own factories and outsourcing factories were going up a lot. The raw material prices went up a lot, which caused the finished vinyl sheet flooring product prices went up a lot. The raw materials went up 20% average.
Weak sales: When so many companies locked down from 2020 to 2022, it is easy to understand that less company was working at that time. So the sales went down a lot.
Difficult to raise sales prices: no matter it is homogeneous sheet vinyl flooring, or heterogeneous sheet vinyl flooring, the prices were so difficult to rise. Actually Armstrong Flooring raised prices for retail customers by 10% and for commercial customers by 15%; but it is far less than the cost increase.
According to Armstrong Flooring report, there were $85 million in additional product and transportation costs, which was making the company in big financial problem.
Armstrong had previously announced it was looking to sell its business. That sale will continue even though the company has filed Chapter 11 bankruptcy protection
The business and team members are working diligently to strengthen their 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.
Armstrong Flooring is open for business and remains firmly committed to their customers, vendors and employees as they navigate the path forward.
Armstrong Flooring plans to end retiree health and insurance plans.
Armstrong said it provides health benefits to 1,663 retirees and their families, with future obligations of $14.9 million. It also provides life insurance benefits to 2,043 retirees, valued at $39.7 million.
Armstrong said it would soon ask the court for interim approval to suspend contributions to those programs at least until it finds a buyer.
Longda Flooring is the largest sheet vinyl flooring manufacturer from China. Actually it is rated # 1 in top 10 vinyl flooring suppliers in China.
Products included:
Homogeneous sheet vinyl flooring
Heterogeneous sheet vinyl flooring
ESD sheet vinyl flooring (Conductive and Dissipative)
Woven vinyl flooring
With 300+ colors, the annual capacity of vinyl sheet is more than 36 million m². There are total 5 warehouses in China and daily stock is 6 million m². MOQ from 1 roll each color. It will be your best sheet vinyl flooring replacement. The quality is about the same level while the cost is much lower cause it is directly from China.
Copy right by Longda China