Lumber Liquidators battles computer network disruption

Retailer says it does not believe consumer data was breached.

BY HBSDealer Staff

Lumber Liquidators said that its corporate and store system computer network was recently disabled by a security incident.

According to Lumber Liquidators, on Aug. 21 the company discovered its network began to display symptoms of malware that eventually disabled parts of the flooring retailer’s network. Lumber Liquidators said it took immediate action to contain the incident.

The Toano, Va.-based company also said, “with very few exceptions, stores have regained the ability to transact business using normal point of sale systems.”

Lumber Liquidators said the company does not believe that sensitive or confidential consumer data was compromised. Customer data, including credit card information, is secured and maintained on systems outside of the company’s network.

“Our first priority has been to continue to serve our customers and aid our store employees in that effort,” Dennis Knowles, Lumber Liquidators president and CEO said in a prepared statement.  “I would like to thank the many employees who exhibited ingenuity and made personal sacrifices to ensure our customers’ needs were met.”

“Our diligent work over the past several years to develop system redundancies and business continuity plans paid dividends that were made apparent in our ability to remain open while working to restore our systems,” Knowles continued.  “We used manual workarounds to facilitate transactions and brought in outside resources to help ensure we returned to normal operations as soon as possible, but I would also like to thank our customers for their patience and understanding during this event.”

The company maintains cyber-security and other insurance and has been working collaboratively with its carrier throughout this incident. But Lumber Liquidators said it is too early in the restoration and recovery process to determine the net impact of costs and recoveries on the Company’s financial results.

Lumber Liquidators operates 416 retail locations nationwide.

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Correction: This article was edited to indicate that the company does not believe that sensitive or confidential consumer data was compromised.



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