Don’t you recall when, during the period when we were all in lockdown due to COVID-19, it seemed as if everyone was doing home improvement work? People had the time, the energy, and the nest eggs to then go about redoing kitchens, reflooring, or building home offices. The home improvement boom was a bonanza for home remodeling companies—until it just ended.”
By the time things stabilized and folks went back to work, demand for such home renovations had fallen drastically. That decline in demand surprised most of the home improvement businesses, especially the small and medium-sized businesses that had ramped up production levels during the pandemic boom.
A Vermont business in peril
One of them was GoLab, a Vermont home improvement retailer that sold wood fiber insulation made from renewable wood under the TimberHP brand label. They were enthusiastic, to put it mildly, including buying an old paper mill in Madison, Maine, and turning it into a full-scale factory. It did not go as planned, alas.
On March 25, 2025, GoLab defaulted and filed Chapter 11 bankruptcy with the District of Delaware Bankruptcy Court. Chapter 11 allows a company to stay in business as it reorganizes its debt, but it’s a sign that something has gone wrong.
A run of mishaps pushed GoLab to the edge. Firstly, there were humongous inflation and supply chain cost overruns—the pandemic’s doing, amounting to some $30 million. Then they faced engineering problems adapting the old paper mill into their new headquarters.
That kind of pressure is overwhelming even for a veteran company. For a startup company like GoLab, it was insurmountable.
It’s not just one company that shut down
It wasn’t that one company alone that shut down. LL Flooring filed for Chapter 11 bankruptcy in August 2024. They cited softer demand from homeowners for flooring and remodeling goods.
LL Flooring sold its Atlanta warehouse and assets to private equity firm F9 Investments. F9 purchased 219 of LL Flooring stores and retained up to 1,000 workers, but 211 stores closed.
If you’re a customer of one of these companies, check if your local store is still open. If you’ve placed any orders or have outstanding warranties, now’s the time to follow up. And if you’re a contractor or builder who relies on TimberHP products, expect some delays or changes in availability while GoLab goes through the bankruptcy process.
Also, don’t play with tiny brands anymore—most of them are still struggling with ongoing cash flow problems generated by the pandemic. Always ask for supply calendars and financial feasibility at signup.
for big orders or long-term contracts.
Last words
The home repair sector is being hit by COVID-19. A gilt-edged growth opportunity for what it seemed like—until survival mode for all of us. Homeowner, customer, or contractor, it’s always wise to be savvy and cautious, particularly when there’s no longer a more familiar name.
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