Neighborhood Intelligence terminated its $150 million acquisition of F9, the parent company of Lumber Liquidators and Cabinets To Go, because F9 failed to meet certain financial requirements and closing conditions necessary for the deal to proceed.
- Neighborhood Intelligence ended the $150 million acquisition of F9 due to unmet financial requirements and closing conditions
- The deal was meant to create Beyond Home Services, a one-stop home destination combining furnishings, mortgage financing, and real estate brokerage
- Lumber Liquidators filed for Chapter 11 bankruptcy in August 2024 and was forced to sell its 216 stores and assets
- Original founder Tom Sullivan's private equity firm F9 Investments purchased Lumber Liquidators after its bankruptcy restructuring
- Both F9 and Neighborhood Intelligence will continue operating independently following the terminated acquisition
Neighborhood Intelligence (formerly Bed Bath & Beyond) has terminated the company’s proposed acquisition of F9, the parent company of Lumber Liquidators and Cabinets To Go, according to Marcus Lemonis, Neighborhood Intelligence executive chairman and CEO. Without going into detail, Lemonis said F9 had “not met certain financial requirements.”
“Disciplined capital allocation and protecting shareholder value are central to how we evaluate every transaction,” Lemonis said in a statement. “We evaluate opportunities continuously, and this is one of many transactions we have considered that we elected not to pursue. In this case, we determined the seller was unable to satisfy the closing conditions, which are essential to our confidence in any business we acquire.”
The $150-million acquisition was supposed to be another step in the Bed Bath & Beyond, Overstock, buybuy Baby and Kirkland’s owner’s plan for a fully integrated home services destination, wrapping up furnishings, mortgage financing and real estate brokerage into a one-stop shop.
The dead deal is one more upheaval in Lumber Liquidators’ turbulent history since its founding in 1994. In April, LL moved its headquarters from its massive 1 million-square-foot warehouse in Sandston, Va., to Lawrenceberg, Tenn. In August 2024 the company filed for Chapter 11 bankruptcy, and it was forced to sell its 216 stores, inventory, distribution center and intellectual property. The company was purchased by original Lumber Liquidators founder Tom Sullivan’s private equity firm, F9 Investments.
Sullivan had made several attempts to purchase the company after the elimination of his position in 2017, finally doing so in 2024. He served as president and CEO from 1994–2006, and again as CEO in 2015, three months after ‘60 Minutes’ aired an exposé on the formaldehyde content of the company’s Chinese-made laminate products.
Jason Delves, the current F9 Brands president and CEO, was to serve as CEO of Beyond Home Services, the one-stop home destination under Neighborhood Intelligence. It appears that Delves will remain at F9 and that both companies will continue operating as usual.
