LL Flooring shareholder comments on Bloomberg report

F9 Investments, which together with its affiliates collectively owns approximately 8.85% of LL Flooring common stock and is the company’s largest shareholder, commented on a June 27 Bloomberg news report that the company has retained AlixPartners, a financial services consultancy that recently advised Bed Bath & Beyond on its bankruptcy proceedings, to receive assistance with operations and explore ways to boost its cash reserves. The report also detailed that LL Flooring’s advisors at Houlihan Lokey Inc. have been “reaching out to potential investors about a deal to inject fresh capital” into the company, and that LL Flooring had just $63.3M of liquidity as of March 31, most of which was available under a credit line. Tom Sullivan, chairman of F9, commented, “This 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 Board’s failed leadership and sham sale process. It should be clear to shareholders now more than ever that urgent, meaningful change is needed in LL Flooring’s boardroom if the Company is to survive. F9’s director nominees bring significant flooring industry expertise, a strong track record of creating value for businesses, and an actionable plan to protect the value of shareholders’ dwindling investments in the Company before they are permanently destroyed.”