Stillwater's Armstrong Flooring plant being shut down after company's purchase agreement

Jul. 11—Armstrong Flooring has entered an acquisition agreement that will see the Stillwater plant shut down by Friday, according to a press release from the company.

Employees were notified Monday.

Late Sunday, Armstrong Flooring Inc. announced its North American assets were being purchased by a consortium of buyers that included AHF LLC and Gordon Brothers. Armstrong Inc. filed for bankruptcy in May. A hearing is set for today where the deal would have to be approved by a Delaware bankruptcy court.

Select plants in Pennsylvania, including Lancaster where Armstrong was headquartered and a plant in Kankakee, Illinois, will continue operations.

"We have been working hard to execute an efficient and value-maximizing sale of the business while keeping the best interests of our valued stakeholders at the forefront of all that we do. In light of the agreement we have reached with AHF and Gordon Brothers, and the agreements we are close to signing with the buyers of the Chinese and Australian businesses following consummation of the auction, Armstrong Flooring is now one step closer to achieving that goal," Armstrong CEO Michel Vermette said in the press release. "We had hoped to identify a buyer for the entire business and avoid any closures of our facilities; however, based on the options available to us, we believe this is the best possible path forward for our business. This reflects the support of our ABL lenders, creditors and other key stakeholders, and has been approved by our Board of Directors. While we cannot speak on behalf of the proposed buyers, we are encouraged that they see the potential of the Company in the markets we serve and understand the role our people play in driving the business forward."

Stillwater's plant, located at 4115 N. Perkins, has been in business in Stillwater since 1987, at times employing more than 200 people. The plant laid off 31 workers in 2019 as it consolidated products across the North American plants. Workers learned in May that the Chapter 11 announcement might lead to the Stillwater plant being shut down. A plant in Jackson, Mississippi, is also shutting down.