LL Flooring Holdings founder Tom Sullivan succeeded in his proxy fight with the company formerly known as Lumber Liquidators, according to a press release from Sullivan’s private equity firm, F9 Investments.
F9 Investments prevailed in electing Sullivan, John Jason Delves and Jill Witter to LL Flooring’s board at the board’s annual meeting July 10.
"We are deeply appreciative for the support our nominees received from LL Flooring’s shareholders," Sullivan said in a statement. "As newly elected directors, we are committed to getting to work immediately and in close collaboration with our new Board colleagues."
The victory comes soon after Bloomberg reported LL Flooring is considering filing for Chapter 11 bankruptcy as the flooring retailer struggles to keep up with high interest rates and decreased home renovation activity.
The company is also working with AlixPartners, a financial consultant that recently advised Bed Bath & Beyond on its bankruptcy, to assist in boosting its cash flow.
LL Flooring shares fell to as low as $0.53 per share on July 5 after Bloomberg reported the potential bankruptcy filing. Shares were trading for around $1.40 in the days before the report. LL Flooring stock was trading at $0.74 per share as of publication time of this article.
The company said in a statement on July 1 it believes its projected levels of liquidity may not be sufficient for this year’s third quarter.
“The company is in discussions with representatives of the banks that are party to the credit agreement regarding an additional liquidity reserve requested by the banks and additional modifications to certain provisions of the credit agreement,” the company said.
To improve cash flow, LL Flooring is working to sell its Sandston, Va., distribution center, the company added.
