TUKWILA, WASH.—iFloor, the industry’s largest online retailer and one of the largest flooring dealers overall, filed for Chapter 11 protection on Dec. 4 in bankruptcy court in Seattle and eliminated 90 out of 150 positions.

The company pioneered the e-tailer concept for flooring when it went online in 1998 and eventually started adding brick-and-mortar stores in 2004. In 2006 it also became the first electronic dealer to sell installation online. At its peak, also in 2006, iFloor’s annual sales were estimated at $60 million, obtained through online sales and through 38 locations in 19 states. According to the company, its installation service program extended to 22 states. Under its corporate name, Smooth Corp., it was even listed on Inc. magazine’s 500 list of fastest-growing private companies.

Mark Northrup, a bankruptcy attorney representing iFloor, was quoted by The Seattle Times that the company “concluded it was unable to secure adequate operating funding to go forward in this economy.”

The company said in a separate statement, “Despite its best efforts, [it] could not overcome the unprecedented current economic environment and the fact that consumers are spending less money remodeling their homes.”

In its Chapter 11 documents, iFloor estimated assets of $1 million to $10 million, and liabilities between $10 million and $50 million. While suppliers and distributors of all types of flooring products dominate the list of unsecured creditors, Google was listed as the second largest with $386,486 owed.

Northrup told The Seattle Times the company plans to “concentrate on selling the existing inventory that it has,” over a period of months. During that period, “I think they will see if there is any alternative” to keep the company going.