Beaulieu Group, a Dalton-based flooring company, filed for chapter 11 bankruptcy protection according to Chattanooga CBS affiliate WDEF.
The flooring industry has been making its way back since the hard blow it took during the 2008 housing market collapse and ensuing double-dip recession. Beaulieu was considered one of the “big three” of flooring manufacturers in northwest Georgia competing with Shaw and Mohawk. It has since ceded its number 3 position due to a shift away from carpet to more hard surfaces according to the Chattanooga Times-Free Press.
From the Times-Free Press:
“Beaulieu family members and our board of managers believe pursuing a restructuring through chapter 11 is the best path forward at this time,” Michael Pollard, president of Beaulieu Group LLC, said in a statement today. “We have evaluated alternatives to address Beaulieu’s capital structure, and believe that restructuring through the chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success.”
The 40-year-old company was once the third biggest carpet maker in America, but its industry’s position has slipped as Mohawk, Shaw, Engineered Floors and Interface have grown and consumers have shifted more floor covering to hard surfaces rather than carpet.
Beaulieu’s management is hopeful that reorganization will make for a leaner company and invest for the future.