Lumber Liquidators
| Company type | Public (formerly) |
|---|---|
| Industry | Retail (hard-surface flooring) |
| Founded | 1994 |
| Founder | Tom Sullivan |
| Headquarters | Not specified , United States |
Area served | United States, Canada |
Key people | Tom Sullivan (founder, interim CEO 2015, acquirer 2024), Charles E. Tyson (former CEO), Robert Lynch (former CEO), John Presley (CEO from Nov 2015) |
| Products | Hardwood, laminate, vinyl plank, tile, bamboo, cork flooring; related tools and accessories |
Number of employees | Over 1,000 (Not specified (before 2018)) |
| Website | www |
Lumber Liquidators is a U.S.-based retailer that specializes in a variety of hard-surface flooring products such as hardwood, laminate, vinyl plank, tile, bamboo, and cork, along with related tools and accessories. On August 11, 2024, the company filed for Chapter 11 bankruptcy but managed to avoid liquidation three months later due to a last-minute acquisition by its founder, Tom Sullivan.
Origins
Established in 1994 by Tom Sullivan, who transitioned from a building contractor to an entrepreneur, Lumber Liquidators initially operated by acquiring surplus wood and reselling it from a trucking yard located in Stoughton, Massachusetts. By 1996, the business had shifted its focus exclusively to hardwood flooring and opened its inaugural store on January 5 in West Roxbury, Massachusetts, achieving sales of 150 square feet on the first day. A second location was launched in August 1996 in Hartford, Connecticut.
Growth
Over time, the company grew into one of the leading hardwood flooring retailers in the United States, expanding to more than 375 stores staffed by over 1,000 employees across 47 states and Canada. It also introduced e-commerce platforms, catalog sales, and established a call center in Virginia. By the close of 2018, Lumber Liquidators operated upwards of 415 stores throughout North America.
Charles E. Tyson served as CEO prior to bankruptcy. The company’s stock was publicly traded on the New York Stock Exchange under the ticker symbol LL.
In response to the housing market downturn in 2009, Lumber Liquidators increased brand exposure by sponsoring programs on HGTV, DIY Network, and ABC’s Extreme Makeover: Home Edition.
The firm expanded into the Canadian market toward the end of 2010 with plans to open between 36 and 40 outlets.
In April 2020, the company underwent rebranding to become LL Flooring; subsequently, on January 1, 2022, it updated its corporate name to LL Flooring Holdings, Inc.
Bankruptcy filing, intended closure and brand reversal
In July 2024, LL Flooring issued a warning about potential Chapter 11 bankruptcy due to falling sales and reduced home renovation activity, with cash reserves projected to be depleted by Q3. Its share price declined nearly 20%, trading around $0.92 per share. The company officially filed for Chapter 11 bankruptcy protection in Delaware on August 11, 2024, with plans to sell assets and shutter 94 stores.
By September 3, 2024, LL Flooring announced intentions to close all of its 424 retail locations after failing to secure a stalking horse bidder. Nevertheless, on September 9, founder Thomas Sullivan’s private equity firm F9 Investments struck a last-minute deal to acquire the business. The court approved this acquisition on September 16. By October 2024, remaining outlets were rebranded back under the Lumber Liquidators name.
Controversies
In 2013, an investigation by the Environmental Investigation Agency revealed Lumber Liquidators’ questionable sourcing methods that contributed to the destruction of endangered tiger habitats and forests. Following this, a Russian supplier was convicted in 2014, which led to an approximately 20% decline in the company’s stock amid concerns over potential violations of the Lacey Act.
A 60 Minutes exposé in 2015 accused Lumber Liquidators of selling laminate flooring imported from China containing formaldehyde levels that exceeded regulatory emissions standards by significant margins. Hedge fund manager Whitney Tilson shorted the company’s stock after tests showed formaldehyde concentrations two to six times above limits set by the California Air Resources Board. The stock price dropped by about 25% immediately after the report and plummeted roughly 75% within eight months. The company eventually agreed to pay a $33 million fine.
Multiple class action lawsuits were filed concerning both formaldehyde emissions and customer service issues. On June 16, 2015, CEO Robert Lynch unexpectedly resigned; Chief Merchandising Officer William Schlegel was also dismissed. The company halted sales of laminate flooring manufactured in China. Founder Tom Sullivan stepped in as interim CEO until John Presley took over in November of that year.
On October 22, 2015, Lumber Liquidators entered a guilty plea for illegally importing hardwood flooring. In February 2016, it received penalties totaling $13.15 million—the largest amount ever imposed under violations of the Lacey Act of 1900—which included criminal fines and contributions toward conservation efforts.
External links
- Home improvement retail businesses in the United States
- American corporations founded in 1994
- Retail enterprises established in 1994
- United States forest product firms
- Businesses headquartered in Tennessee
- Formerly listed on the New York Stock Exchange
- Companies that entered Chapter 11 bankruptcy protection in 2024
- 1994 establishments in Massachusetts
- Companies of the United States by year of establishment
- American companies established in 1994