Key home improvement products company files Chapter 11 bankruptcy

When consumers learn a business is filing for bankruptcy protection, often the first image that comes to their minds is a company that is having financial distress. Economic problems are not the only reason businesses need to file for bankruptcy, as the automatic stay provision of bankruptcy can ...

Nov 14, 2025 - 00:00

Key home improvement products company files Chapter 11 bankruptcy

When consumers learn a business is filing for bankruptcy protection, often the first image that comes to their minds is a company that is having financial distress.

Economic problems are not the only reason businesses need to file for bankruptcy, as the automatic stay provision of bankruptcy can help a company facing litigation to fend off legal consequences while a bankruptcy case proceeds.

A bankruptcy filing can also delay regulatory sanctions from government agencies until after a company resolves its insolvency issues.

As such, certain home improvement businesses have filed for bankruptcy this year, due to legal and regulatory issues, rather than financial distress.

Wellmade Floor Covering filed bankruptcy to avoid foreclosure

Hard surface flooring producer and distributor Wellmade Floor Covering International Inc. filed for Chapter 11 bankruptcy on Aug. 4, 2025, seeking a sale of its assets after a law enforcement raid on its Georgia manufacturing plant resulted in a debt default and a foreclosure sale.

Wellmade Floor Covering's petition filed in the U.S. Bankruptcy Court for the Northern District of Georgia cancelled a scheduled Aug. 5 foreclosure sale of Wellmade’s assets.

Welmade's secured creditor AHF IC was owed about $27 million in secured debt , consisting of a $20 million term loan and a $7 million revolving credit facility.

AHF IC had either scheduled or rescheduled foreclosure sales four times in July 2025, but the August bankruptcy filing implemented an automatic stay of all legal actions against the debtor while the bankruptcy case proceeded.

Wellmade’s legal problems began on March 26, 2025, when U.S. Immigration and Customs Enforcement, the FBI and Georgia Bureau of Investigation executed a search warrant at the company’s Cartersville, Ga., manufacturing facility and arrested owner George Chen and his nephew Jiayi Chen on charges of alleged trafficking persons for labor servitude, according to a declaration by Chief Restructuring Officer David Baker.

The FBI and ICE investigated whether George Chen and Jiayi Chen engaged in alleged labor trafficking in connection with the recruitment of Chinese residents to come to the U.S. on L-1 visas to work for Wellmade.

No criminal charges were filed against Wellmade, and no criminal charges had been threatened, according to a declaration.

AHFIC purchased Wellmade in bankruptcy sale

The bankruptcy court on Oct. 8 approved the sale of Wellmade to stalking-horse bidder AHFIC, and the transaction closed on Nov. 7.

Another home improvement company has filed for bankruptcy protection after a state agency dissolved two of the company's entities for failing to file annual reports.

Home improvement product maker and distributor TP Brands International files for bankruptcy.

TP Brands files for bankruptcy protection

TP Brands International Inc., a home improvement products manufacturer and distributor, and two affiliates filed for Chapter 11 protection on Nov. 10 to reorganize their businesses.

TP Brands International's products:

Premfloor
Feather Lodge's AquaLogic Pro Flooring
Homestead Flooring
JetCore
AeroCore
Aurafina vanities.

The Palmetto, Fla.-based maker of vinyl flooring, kitchen and bath cabinetry, and bath vanities filed its petition on Nov. 10 in the U.S. Bankruptcy Court for the Middle District of Florida, listing $500,000 to $1 million in assets and $10 million to $50 million in liabilities.

TP Brands International's and affiliate TP Brands Worldwide's products include Premfloor, Feather Lodge's AquaLogic Pro Flooring, Homestead Flooring, which includes JetCore and AeroCore, and Aurafina vanities.

TP Brands faced administrative dissolution from state

The debtor filed for bankruptcy after the State of Florida issued an administrative dissolution of the company and its affiliate TP Brands Worldwide on Sept. 26 for failure to file annual reports, according to RK Consultants.

The other affiliate, Premfloor Inc., which did not face dissolution, manufactures and distributes its brands of flooring, including AquaLogic Pro, Homestead Flooring, JetCore, AeroCore, Best of Vinyl, Aurafina and Blair Shaker vanities.

Aside from legal or regulatory issues forcing companies into a bankruptcy filing, the home improvement industry is also facing challenges that other industries face, including supply chain disruptions and labor shortages, which have led to increased costs and cut into profits.

"The North American home improvement industry has faced persistent supply chain challenges, exacerbated by global economic uncertainties and geopolitical tensions," according to a North America Home Improvement Market Report from Market Data Forecast in October.

"These disruptions have led to extended lead times and increased production costs, ultimately affecting profit margins," the report said.