RICHMOND, Va. - Retail flooring giant Lumber Liquidators has seen CEO Dennis Knowles resign, effective immediately. The resignation comes after a year of severe stock decline.
Replacing Knowles will be both Charles E. Tyson and Nancy A. Walsh, who will co-lead the company until it finds a stable CEO. The Board has hired a national recruitment firm to assist it with the search, it said.
"I am proud of the work we have accomplished to resolve many outstanding issues for Lumber Liquidators, and want to thank the employees of Lumber Liquidators for their support and commitment," said Knowles.
I appreciate the confidence of the Board and the opportunity to lead the Company during this transition period. We have a strong leadership team and, together, we are excited to continue our transformational strategy," said Tyson.
Shares rose nearly 2 percent following the announcement. The company's stock has declined more than 32 percent over the past year.
Last month, analysts at Morgan Stanley say Lumber Liquidators struggled to achieve a sustainable improvement in sales since regulatory and product issues hit in 2015, despite the home improvement industry improving as a whole. They attributed the company's troubles to its infamous 2015 scandal, in which a 60 Minutes report exposed the retailer for having too much formaldehyde in its Chinese-made laminate flooring.
They said that the company's main competitor, Floor & Decor Holdings Inc., is growing at a rate of 20 percent a year while expanding into new regions. Floor & Decor's shares have surged by 51 percent in the past year.
Analysts recommend the company change its name, as they say its reputation is tarnished.
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