Tom Sullivan Launches Proxy Fight at LL Flooring

New York, NY, June 3, 2024-"LL Flooring’s founder, Tom Sullivan, is launching a proxy fight at the company he created, marking the latest investor activism at the struggling flooring seller as the company considers alternatives,” reports the Wall Street Journal.

“In a proxy filing Friday, Sullivan’s firm F9 Investments disclosed an 8.9% stake in LL Flooring Holdings LL 3.03%increase; green up pointing triangle, formerly known as Lumber Liquidators. F9 said it is nominating Sullivan, John Jason Delves and Jill Witter to the company’s board.

“F9 launched a campaign to acquire LL Flooring last year, but the firm ultimately withdrew its offer in January, citing the company’s demands in negotiations.

“Sullivan’s firm said in a letter to shareholders that it is ‘deeply concerned about the severe value erosion of our investment and the utter lack of urgency and engagement demonstrated by the company’s entrenched board of directors.’

“The firm pointed out LL Flooring’s recent going-concern warning and said the company’s strategy of selling assets and seeking more financing was wrong.

“LL is fresh off a previous proxy fight with Isaac Capital Group and Live Ventures, which together hold about 3.8% of the company. The investors agreed in late April to withdraw their three board nominees and support LL’s directors.

“That day, LL also disclosed that it had received a non-binding proposal to acquire the company at $2.50 a share. The company said at the time it was negotiating the latest proposal, which hasn’t been accepted.”