Several major home improvement and gardening retailers have filed for Chapter 11 bankruptcy amid growing economic stress following the pandemic-era boom.

Post-pandemic inflation, shrinking consumer demand, rising interest rates, and costly supply chain issues have triggered a string of bankruptcies across the home renovation sector in 2024 and 2025, with several Home Depot rivals impacted, as The Street reports.

Home improvement companies initially benefited from a DIY surge during the COVID-19 lockdowns in 2020.

But as restrictions lifted and spending habits changed, many firms were left overextended. Economic pressures have since exposed structural vulnerabilities in the industry.

LL Flooring seeking buyer amid bankruptcy filing

LL Flooring filed for Chapter 11 protection after a steep sales decline in housing-related markets. Once a major supplier of flooring materials, the company struggled to remain competitive in a slowed renovation economy.

To address its financial issues, LL Flooring agreed to sell its inventory and distribution center to a subsidiary of private equity firm F9 Investments.

The deal includes a $1 million cash payment plus inventory priced at 57% of landed cost.

The company attributed its bankruptcy filing to persistent headwinds in home repair and remodeling, which intensified after the end of the COVID-related retail surge.

GoLab hit by construction, cost overruns

On March 25, 2025, GoLab Inc., the parent company of TimberHP, filed for Chapter 11 in the District of Delaware. TimberHP, which manufactures wood fiber insulation, faced major cost overruns during construction of its new facility in Madison, Maine.

The company reported $30 million in unexpected expenses caused by inflation, engineering issues, and delays originating from pandemic-era disruptions. These challenges ultimately stalled the plant’s completion.

Despite interest in sustainable products like TimberBatt and TimberFill, GoLab had insufficient resources to resolve delays and manage mounting construction costs, forcing it to seek court protection.

Employee-owned garden retailer seeks protection

America’s Gardening Resource Inc., the parent company of Gardener’s Supply Company, filed for Chapter 11 on June 20 The company is attempting to sell its assets after accumulating liabilities far exceeding its assets.

The firm and four affiliates listed up to $50 million in debt against assets valued at no more than $10 million.

The business is fully owned by employees through a stock plan, heightening the impact of its financial distress.

The company aims to sell to a stalking-horse bidder, pending court approval, as it attempts to preserve operations while protecting employees and creditors.

Mosaic Unwinds Operations Under Debt Burden

Mosaic Companies LLC filed for Chapter 11 on July 8, 2025, along with nine affiliates. The luxury tile and stone distributor reported between $100 million and $500 million in liabilities, including $65 million in secured debt.

Mosaic previously sold its subsidiary, Opustone LLC, to a Home Depot affiliate for $93.15 million. It now plans to sell Walker Zanger and Anthology to Transom Capital Group for $17.5 million and may liquidate any unsold assets.

The company also obtained $15 million in debtor-in-possession financing from Truist to support operations during proceedings, but its long-term survival remains uncertain.