Less than a year after announcing plans to sell its Los Angeles-area plant for nearly $77 million, Armstrong Flooring is exploring selling the company.
The announcement follows four straight years of losses for the manufacturer, which shed its hardwood flooring division in December 2018.
Armstrong Flooring recently said it hired Houlihan Lokey Capital Inc. to “assist with a process for the sale of the company and with consideration of other strategic options.” The company also said it secured a $35 million loan to pursue its operational and strategic goals.
Last year the company, which has a plant along Dillerville Road in Lancaster city, moved its headquarters and technical center from a leased office on Columbia Avenue to Greenfield in East Lampeter Township, a shift that was expected to reduce rent by more than 60%. It was paying $5.62 million a year to lease its Columbia Avenue location, according to public filings from 2016, when it signed the five-year lease.
The February sale of its Los Angles area -plant was part of a sweeping overhaul of the company’s operations started by President and CEO Michel Vermette soon after he was hired in September 2019. His goal was to create “a leaner, faster growing and more profitable business,” LNP | LancasterOnline reported when the sale was announced.
Armstrong Flooring was spun off from Armstrong World Industries in 2016, a move that left Armstrong Industries with the far more profitable ceilings business.
Armstrong Flooring debuted with around 3,700 employees, including 750 between its Dillerville Road floor plant and its former Columbia Avenue headquarters. In December 2020, it had around 1,500 employees, including 500 in Lancaster.