Richmond, VA, June 4, 2024-In response to Tom Sullivan’s launch of a proxy fight at LL Flooring, which he founded as Lumber Liquidators, the LL Flooring board issued the following letter to shareholders:
“Dear Fellow Shareholders,
“At our upcoming 2024 Annual Meeting of Stockholders on July 10, 2024, you will be asked to make an important decision regarding the future of LL Flooring.
“Thomas Sullivan, founder of the Company, is attempting to take control of LL Flooring through a costly and distracting proxy contest to install himself and two of his hand-picked employees on your Board of Directors. Given Mr. Sullivan’s actions during the Company’s strategic review process, we believe he may be attempting to force a sale of the Company to himself at a price that may undervalue the Company.
“In addition to Mr. Sullivan and his nominees, Jerald Hammann, another individual shareholder of LL Flooring, has nominated himself to the Board. Mr. Hammann has a history of nominating himself to corporate boards when owning only a few shares of stock. Indeed, Mr. Hammann only owns 10 shares of LL Flooring stock and fundamentally lacks a cogent plan for LL Flooring along with any distinct skills or experience.
“As you consider your vote, we would like to highlight the following:
- Mr. Sullivan’s proxy contest is self-serving, personal and not in the best interests of all shareholders and Mr. Hammann is not qualified to serve on the Company’s Board.
- Your Board and management team have determined a set of five strategic priorities and are taking decisive action to deliver on those priorities to drive value creation.
- Your Board is also taking action to address near-term financing needs.
- Through its previously announced strategic alternatives review process, your Board has been carefully and thoroughly evaluating and engaging with third parties regarding indications of interest and non-binding proposals to acquire the Company.
- LL Flooring has a highly qualified and engaged Board with the right mix of skills and expertise to oversee the Company’s execution of its strategic priorities and the Company’s overall strategic direction.”
Related Topics:Lumber Liquidators, The International Surface Event (TISE)
