Lumber Liquidators names new CEO
Toano-based hardwood flooring retailer Lumber Liquidators has named John M. Presley as its new CEO, effective Nov. 16.
Presley, who has been CEO of Glen Allen-based First Capital Bankcorp. since 2008, is chairman of Lumber Liquidators’ board of directors.
Board member Nancy M. Taylor, the former CEO of Chesterfield-based Tredegar Corp., will assume Presley's role of independent chairman of the board and head of the special committee.
Presley will continue to serve as a member of the board. As CEO, he will succeed Thomas D. Sullivan, Lumber Liquidators’ founder. Sullivan will serve as special advisor to the CEO and remain on the board.
Sullivan has been leading Lumber Liquidators since its former CEO, Robert Lynch, unexpectedly resigned in May amid allegations about the levels of formaldehyde, a carcinogen, in the company’s Chinese-made laminate flooring. That flooring was the subject of a “60 Minutes” television report in March, which was followed by a federal investigation that is still ongoing.
More recently, the company pleaded guilty to federal charges related to another investigation into the illegal importation of hardwood flooring. The company agreed to to pay the government more than $13 million to settle the investigation.
In addition to announcing the new CEO Wednesday, Lumber Liquidators also reported its third-quarter financial results. It recorded a loss of $8.5 million, or a loss of 31 per diluted share, in for quarter compared to net income of $15.7 million, or 58 centers per diluted share, in the third quarter of 2014.
Net sales in the third quarter of 2015 were $236.1 million, a decrease of 11.3 percent from the third quarter of 2014. The company attributed the weaker sales in part to the formaldehyde investigation and a stronger competitive environment.
Lumber Liquidators says Presley has more than 30 years of leadership experience with significant operational, financial, turnaround and risk management expertise. He has served on the Lumber Liquidators board since 2006.