Lumber Liquidators CEO resigns
Toano-based Lumber Liquidators announced Thursday that its president and CEO, Robert M. Lynch, has unexpectedly resigned.
Thomas D. Sullivan, the company's founder, will serve as the acting CEO until a replacement is found.
“I am really proud of the LL Team and I look forward to working with them and providing our customers with the best hardwood floors at the best prices as we have since I founded the Company over 20 years ago,” Sullivan said in a statement.
John M. Presley, Lumber Liquidator's lead independent director, has been appointed as non-executive chairman of the board of directors. The board also accepted Lynch's resignation as a director of the company.
The hardwood foor retailer has come under fire after a March report by CBS’ “60 Minutes” questioned the safety of its Chinese-made laminate floors. The report alleged that the Chinese floors contained unsafe levels of formaldehyde. Earlier this month, Lumber Liquidators said it would stop selling laminate floors sourced from China as it investigates the practices of its suppliers.
With more than 355 locations, Lumber Liquidators is North American's largest specialty retailer of hardwood flooring.
In April, Lumber Liquidators posted a net loss of $7.8 million for the first quarter of 2015 as opposed to net income of $13.7 million during the same time last year.
The company also said last month it is involved in a number of government investigations and legal actions, many of which have resulted from allegations about the company and its product. The Department of Justice is seeking criminal charges against the company under the Lacey Act, which prohibits trade in wildlife, fish, and plants that have been illegally sold.