Stock soars for Lumber Liquidators as founder pushes for buyout
Lumber Liquidators flooring_0.jpg
TOANO, Va. - Retail flooring giant Lumber Liquidators may go private, as founder and former leader Thomas D. Sullivan is urging management to consider a buyout or a merger with his other business, Cabinets To Go.
Sullivan, who founded Lumber Liquidators in 1994, was board chairman up through May 2015 - when he served as interim CEO to guide the company through its famed formaldehyde scandal. He resigned as a member of the board in 2016 after his position was eliminated, still owning 6 percent of the company.
In a Securities and Exchange Commission filing Tuesday, Sullivan said he hopes to "explore strategic options" with the company and is talking with banks and private equity firms about a possible bid.


Lumber Liquidators sues Cabinets To Go

More news about Lumber Liquidators - the wood flooring retailer giant is suing founder and former leader Tom Sullivan's current company, Cabinets To Go.

If he succeeds, Sullivan said wants to merge the retailer with Cabinets To Go, whose operations include a 400,000-square-foot distribution facility in Lawrenceburg, Tennessee and more than 60 showrooms nationwide. Sullivan founded the company - a national retailer of kitchen cabinets, flooring, countertops, and installation services - in 2008.

After the news broke, Lumber Liquidators' shares rose as much as 17 percent.
Sullivan isn't happy with how the company is being run. In an interview with Bloomberg, he called the board "pathetic" and said "they are spending money like crazy."
Lumber Liquidators has not yet issued a comment.
The company cut its outlook for the year last month, reported Bloomberg, citing uncertainty about tariffs and fewer customers.

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Robert Dalheim

Robert Dalheim is an editor at the Woodworking Network. Along with publishing online news articles, he writes feature stories for the FDMC print publication. He can be reached at [email protected].