F9 says LL Flooring disclosure reinforces ‘urgent need for change’ on board

F9 Investments, which together with its affiliates collectively owns approximately 8.85% of LL Flooring Holdings common stock and is the Company’s largest shareholder, commented on the Company’s June 28, 2024 filing which revealed that, under the terms of the Company’s asset-backed revolving facility credit agreement, the Company now believes that its projected levels of liquidity may not be sufficient to meet the minimum excess availability threshold in the third quarter of 2024. In a previous filing on May 8, 2024, the Company had announced its belief that its projected levels of liquidity would be insufficient to maintain compliance with the Credit Agreement in the fourth quarter of 2024. Tom Sullivan, Chairman of F9, commented, “LL Flooring’s shocking disclosure that its projected liquidity will not be sufficient to maintain compliance with its credit agreement months earlier than previously revealed only further hammers home that urgent change is needed in LL Flooring’s boardroom. It is preposterous for the Board to announce this dire development mere days after communicating to shareholders its strategic plan is working and positions the Company for long-term growth. This Board is burning through cash at a rate that could bankrupt the Company in the third quarter, yet it continues to waste valuable shareholder resources paying high-priced advisors to wage a proxy contest. It should be clear that this Board cannot be left at the helm of LL Flooring if shareholders wish to protect the remaining value of their investments in the Company. F9’s three highly qualified director nominees bring the relevant flooring industry expertise, track records of value creation, shareholder alignment, and actionable plan necessary to stabilize LL Flooring’s business and put it on a path to long-term value creation for the benefit of all shareholders.”