LL Flooring sent a letter to its shareholders denouncing founder and former CEO Tom Sulllivan’s latest effort to take back the company he launched.
Formerly Lumber Liquidators, the flooring seller told shareholders it believes Sullivan’s proxy fight is an attempt to “force a sale of LL Flooring to himself at a price that may undervalue the company.”
Sullivan’s private equity firm, F9 Investments, launched a campaign earlier this month to add Sullivan, John Jason Delves and Jill Witter to the company’s board, the Wall Street Journal reported.
F9 Investments recently disclosed an 8.9% stake in LL Flooring Holdings.
In its letter, LL Flooring urged shareholders to vote for board members who are up for reelection over F9’s members.
Back in November, Sullivan’s firm made its second bid to acquire LL Flooring for $3.00 per share—$2.76 less than its previous proposal. The struggling flooring seller rejected F9’s first offer after claiming the bid undervalued the company.
LL Flooring received another takeover offer from Live Ventures Incorporated to acquire the company at $2.50 a share and is still in negotiations.
The flooring seller’s stock is currently trading at $1.58 a share, down from $4.61 on this date last year.
