Lumber Liquidators founder Tom Sullivan’s investment company has raised his stake in Lumber Liquidators to nearly 6%, jumping from a few hundred thousand shares to more than 1.7 million, Street Insider reports. Street Insider also reports that sources close to Sullivan suggest his first step following his share increase may be to push for the removal of Lumber Liquidators President and CEO Dennis Knowles.
Lumber Liquidators shares are down roughly 50% since Knowles took over the company in late 2016, according to the report. The company has struggled to regain its footing since its Chinese-made laminate flooring was discovered to contain high levels of formaldehyde in 2015.
Sullivan, who founded Lumber Liquidators in 1994, was removed as an employee of the company and resigned from its board of directors in 2017. He served as president and CEO from 1994–2006. In March, Lumber Liquidators filed a lawsuit against Sullivan’s Cabinets To Go company for $10 million, alleging it is selling hardwood flooring in violation of an agreement.
