Lumber Liquidators announced the resignation of President and CEO Dennis Knowles.
Knowles also stepped down from the company’s board of directors, effective Feb. 5. Charles Tyson, Lumber Liquidators’ chief customer experience officer, has stepped in as interim president and principal executive officer, and Knowles’ duties will be divided between Tyson and CFO Nancy Walsh. Both will report to the board of directors, which has engaged a national recruitment firm to begin the search for a permanent replacement.
Knowles joined Lumber Liquidators in February 2016 as the company was still reeling from legal issues following a 2015 “60 Minutes” report questioning the formaldehyde levels its Chinese-made laminate flooring. Knowles, who previously served as an executive at Lowe’s, succeeded Lumber Liquidators CEO John Presley in November 2016 after Presley resigned.
Under Knowles’ tenure as CEO, the company settled a $36 million class-action lawsuit related to its Chinese-made laminate flooring sold between 2009 and 2015. It also paid $33 million for misleading investors during the height of the formaldehyde scandal in 2015.
“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,” Knowles said in a statement announcing his departure.
The company’s stock increased 3.6% from $7.86 to $8.15 following Knowles’ resignation announcement Feb. 6, according to MarketWatch. It had fallen to $7.03 as of the publication time of this article.
