NEWSLETTER
Companies and retailers of home improvements have faced macroeconomic challenges in the last five years since the COVID-19 pandemic with slow sales of housing that contribute to a decrease in business.
A combination of growing interest rates, higher housing prices and less housing in the market has discouraged consumers to buy houses, affecting tertiary companies that benefit from real estate sales.
Companies that sell furniture, appliances, consumer appliances and products for home improvements have seen sales fall when housing sales are suffocated.
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Sales of housing previously occupied in 2024 decreased to the lowest level since 1995 with 4.06 million sales, which was 0.7% lower than 2023, according to the National Association of Data of Immediate Agent.
The contributing factors included a 4.7% leap in the average price of the house to $ 407,500 in 2024 and the 30 -year mortgage rate increased to approximately 7% earlier this year before falling to approximately 6.6% currently, according to Freddie Mac.
The huge retailer of improvements for the home LL Flooring felt the effects of increasing housing prices and interest rates last year, since on August 11 he presented himself to the bankruptcy protection of Chapter 11 in search of a sale of his assets. The debtor also suffered wide winds against the repair and remodeling markets that occurred after the COVID-19 pandemic decreased.
Ll Flooring reached an agreement to sell up to 219 stores and the Sandston distribution center, Virginia of the company, to a subsidiary of the private capital firm F9 Investments for a purchase price that includes a fixed amount of $ 1 million, an inventory price of 57% of the cost value of the land of the acquired inventory and the costs assumed of cure.
Another retail house improvement chain, Historic Kelly-Moore Paints, in January 2024 closed 157 of its retail locations and adhered to some 700 employees, in a breath outside the court of all its commercial operations.
The Irving company, Texas, which was founded in 1946, blamed its closure to the heavy financial burden of paying around $ 600 million in Asbestos claims agreements, the risk of millions of dollars in claims of Asbestos Futures and its inability to invest in solutions to solve problems of the supply chain for a long time they worshiped during the Pandemic COVID-19.
And now, a home improvement service provider is directed to the bankruptcy court.
Pros
Air Pros Files for bankruptcy to sell assets
The Matrix of the Great Company of the HVAC system, the Air Pros Repair and Maintenance Company has presented the bankruptcy protection of Chapter 11 in search of a sale of its assets, since it faces breaches in the debt insured by the preparation, the low performance commercial units and the continuous operational challenges.
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AFH Air Pros LLC and 19 affiliates presented their petition at the United States Banking Court for the Northern District of Georgia on March 16, listing $ 100 million to $ 500 million in assets and liabilities. The debtor owes more than $ 250 million in a line of prediction credit secured since October 31, 2022, and owes about $ 45 million in unusual general debt.
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The largest non -guaranteed creditors of the debtor include CM Heating Inc., it owes more than $ 6.1 million; Farewell holdings, owes more than $ 3.7 million; and C&P Hansen heating and cooling, had more than $ 2.6 million.
The debtor seeks the approval of up to $ 20 million in financing of the debtor in possession of his prepaign lenders, which includes $ 10 million in new money and a reduction in the preparation debt of $ 10 million.
Air Pros will present a motion of bidding procedures
The debtor plans to present a motion of bidding procedures for a sale of his assets to a horsepower bidder in the next few days, according to the statement.
The debtor, founded in 2017 in Fort Lauderdale, Florida, expanded in eight states: Alabama, Colorado, Florida, Georgia, Louisiana, Mississippi, Texas and Washington, and currently employs 700 workers, operates 600 vehicles, and has provided services to hundreds of thousands of customers, according to a disappointment for a restriction officer and a restriction officer
Air pros operates eight other business units, including a domestic service of Colorado Springs, Colo.; Hansen Super Techs of Mobile, Ala.; Doug's Service Company of Houma, La.; Heating and air of the Air Force of Laganda, GA.; Plumbing and air conditioning of Dallas de Dallas; Dream Team Calefacting & Air of Denham Springs, La.; EVRETT CM heating and CM cooling, Wash.; and East Coast Mechanical Air Conditioning and Plumbing of Boynton Beach, Fla.
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