The Chapter 11 filing came after the company spent months trying to find a buyer and haggling with lenders, according to court papers filed in U.S. Bankruptcy Court in Wilmington, Delaware. Armstrong said it owed creditors $317.8 million and had assets worth $517 million.
“Simply stated, the company’s increasing costs significantly outpaced its pricing power,” Armstrong Chief Executive Officer Michel S. Vermette said in a court filing.
The maker of vinyl sheets, planks and tiles is the latest company to seek court protection from creditors to deal with spiraling costs and weak sales lingering from the Covid-19 pandemic. Last month, Sungard Availability Services LP, a technology company that helps corporate clients recover from disasters, laid part of the blame for its bankruptcy on higher energy prices that hit its U.K. affiliate.