Armstrong Flooring has halted its auction of its North American assets and the company until July 5 as it seeks higher bidders.
The company filed for Chapter 11 bankruptcy in early May and has been operating on borrowed money from lenders Pathlight Capital and Bank of America, in anticipation of a sale.
“Armstrong Flooring held an auction with interested parties to acquire all or various parts of our business on June 27,” a company spokesperson said.
After multiple days of talks and negotiations with interested parties, the company identified a lead bidder in Australia and China, which, Armstrong said, exceeded the starting bids.
However, “after multiple days of talks and negotiations with interested parties, auctions for our North American assets and the entire company as a whole have been adjourned as the company works to seek higher and better bids,” the company spokesperson said.
The next hearing is scheduled for July 7 and any sale motions will require court approval, the spokesperson said. Following that, any transactions would be subject to regulatory approvals and customary closing conditions.
Armstrong Flooring had to align with the court’s availability to resume the auction, meaning the earliest the court can accommodate Armstrong Flooring is Tuesday, July 5, the company said.