LL Flooring announced it has initiated an “exploration of strategic alternatives” in response to “multiple inbound expressions of interest” for a transaction with the company. The board of directors said it will explore a range of options, including a potential sale or merger.
LL Flooring’s announcement comes two months after it rejected an unsolicited proposal from its former founder and CEO Tom Sullivan to buy LL Flooring’s outstanding shares for $5.76 per share in cash. LL Flooring’s board said the offer “significantly undervalued” the company’s worth but remained open to considering a transaction that “reflects the company’s value and prospects.”
“The LL Flooring board of directors has confidence in the company’s strategy and believes that the strategic work the management team has been doing to strengthen the business will provide long-term benefits,” stated Nancy Taylor, independent chairperson of the board. “While this work is well underway, in light of external interest in the company, the board and management are taking the opportunity to explore a range of potential strategic alternatives to maximize shareholder value. We look forward to working diligently with our external advisors to identify the best path for the future of LL Flooring and all of our shareholders.”
The exploration of a potential “strategic transaction” also follows a series of drops in profit for LL Flooring. The company reported a net loss of $12.08 million in 2022. The first two quarters of 2023 have also seen losses of $10.58 million and $39 million, respectively.
