LL Flooring is urging its shareholders to vote against adding founder and former CEO Tom Sullivan onto its board of directors.
Sullivan’s private equity firm, F9 Investments, launched a campaign earlier this month to add Sullivan, John Jason Delves and Jill Witter to the company’s board.
In a June 18 letter, LL Flooring instead asked shareholders to vote for the three members who are up for reelection at its annual meeting on July 10.
“In our view, Mr. Sullivan has a highly questionable ethical and leadership track record and is pushing a personal agenda that is not in the best interests of all the Company’s shareholders,” the letter stated.
This is the second letter in a week LL Flooring sent to shareholders urging against voting Sullivan onto the board.
In May 2023, Sullivan’s firm made a bid to buy the company for $5.76 per share. That offer was rejected by the LL Flooring Board, claiming the bid undervalued the company. Sullivan subsequently revoked F9’s offer.
Then in November, Sullivan’s firm made its second bid, this time for $3.00 per share—$2.76 less than its previous proposal.
F9 Investments recently disclosed an 8.9% stake in LL Flooring Holdings.
LL Flooring received another takeover offer in May from Live Ventures Incorporated to acquire the company at $2.50 a share and is still in negotiations.
LL Flooring’s stock is currently trading at $1.39 a share, down from $4.59 on this date last year.
