LL Flooring Founder and former CEO Tom Sullivan withdrew an offer to buy his former company (then named “Lumber Liquidators”) after LL Flooring released its second quarter financial results and announced it would begin exploring “strategic alternatives,” including a potential sale.
Sullivan, who now operates F9 Group and Cabinets To Go, made an unsolicited bid to purchase LL Flooring in May for $5.76 per share. LL Flooring’s board of directors rejected that offer in June, arguing it undervalued the company but noted it would be “open to discussions.” A 13D filing Aug. 17 announced Sullivan would withdraw his offer “in light of LL’s deteriorating financial and operational performance and eroding value, as disclosed in LL’s second quarter 2023 results.”
LL Flooring reported a net loss of $39 million in the second quarter of 2023.
Sullivan’s withdrawal caused LL Flooring’s stock to tumble 11%, according to SeekingAlpha. The company’s stock had a boost of 24% when it announced it would begin exploring strategic transactions. As of this morning, it was trading at $4.01, according to MarketWatch.
