Lumber Liquidators founder wants company to go private
Thomas Sullivan has purchased more than 1.34 million shares of retailer in past two months.
Thomas Sullivan, the founder and former CEO of Lumber Liquidators, wants to “explore strategic options” and possibly take the flooring retailer private.
In a Sept. 3 filing with the Securities and Exchange Commission, Sullivan indicated that he also wants to combine Lumber Liquidators with his business Cabinets to Go based in Lawrenceburg, Tenn.
Sullivan is the CEO of Cabinets to Go and the sole member of S9 Investments, LLC. In roughly the past two months, S9 Investments has acquired more than 1.34 million shares of Lumber Liquidators at an average price of $7.88 per share. According to Sullivan, shares of Lumber Liquidators are “undervalued.”
In the filing, Sullivan said he wants to speak to Lumber Liquidators board of directors and management.
From 1994 through May 2015, Sullivan served as chairman of Lumber Liquidators and as president and CEO from 1994 to September 2006. Sullivan served as interim CEO in 2015 following a scandal regarding formaldehyde in flooring manufactured in China and sold by the Lumber Liquidators. Sullivan resigned as a member of the board in late December 2016.
Based in Toano, Va., Lumber Liquidators operates more than 400 locations across the country.
In its most recent earnings release, Lumber Liquidators reported that second quarter 2019 net sales rose roughly 2% to $289 million. But the company also reported a net loss of $2.9 million for the period.
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