LL Flooring is working with AlixPartners, a financial consultant that recently advised Bed Bath & Beyond on its bankruptcy, to assist in boosting its cash flow, Bloomberg News reported.
The operational help comes as LL Flooring reported having $63.3 million of liquidity as of March 31, most of which was available under a credit line, according to Bloomberg.
LL Flooring said in a statement it believes its projected levels of liquidity may not be sufficient to meet the minimum excess availability threshold for this yearâs third quarter.
LL Flooring is considering selling its Sandston, Va., distribution center to improve its cash flow, the company says.
Founder of former LL Flooring CEO Tom Sullivan said in a statement, âThis report reinforces that LL Flooring is poorly run, desperate for cash and teetering on the brink of going out of business as a result of the current boardâs failed leadership and sham sale process.â
Sullivan and his private equity firm, F9 Investments, launched a campaign in early June to get Sullivan, John Jason Delves and Jill Witter onto LL Flooringâs board. However, LL Flooring has been fighting the campaign, sending multiple letters and a presentation to its shareholders urging them to vote against F9âs nominees.
In May 2023, Sullivanâs firm made a bid to buy the company for $5.76 per share, but LL Flooringâs board rejected it, claiming it undervalued the company. Sullivanâs firm made a second bid in November for $3.00 per share.
LL Flooringâs stock is currently trading at $1.40 a share, down from $3.83 on this date last year.
