F9 Investments Proposes to Acquire LL Flooring Holdings for $3.00 Per Share in Cash and Nominates Three Highly Qualified Directors to the Board

F9 Investments, LLC (“F9”) which, together with its affiliates, collectively owns approximately 8.8% of LL Flooring Holdings, Inc.’s (“LL Flooring” or the “Company”) (NYSE: LL) common stock, today sent a letter to the Board of Directors (the “Board”) of LL Flooring proposing to acquire all the issued and outstanding shares of common stock of LL Flooring for $3.00 per share (the “Proposed Offer”).

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The Proposed Offer is not subject to any financing condition and is fully financed through cash on hand and borrowing under an existing revolving credit facility from an affiliate of F9. The value being offered by F9 reflects LL Flooring’s deteriorating financial and operational performance, as disclosed in its third quarter 2023 results, as well as the Board’s refusal to meaningfully engage with F9 and its affiliates or allow it to perform basic due diligence, following F9’s previously announced acquisition proposal.

F9’s owner, Thomas Sullivan said, “We believe our offer represents a compelling, immediate, and certain cash value for LL’s shareholders, in light of the Company’s deteriorating financial condition and declining stock price, which in our view reflects the market’s lack of confidence in the current Board’s strategy. LL Flooring’s most recent, dismal third quarter earnings performance further reflects the Board and management’s lack of urgency, credible plan, execution ability, or capacity to control costs despite numerous pledges to do so.”

F9 also announced that Mr. Sullivan intends to nominate three highly qualified candidates to LL Flooring’s Board of Directors at the 2024 Annual Meeting of Stockholders (the “Annual Meeting”). The nominees include:

• Thomas Sullivan, Founder and Chairman of Cabinets to Go, LLC (“Cabinets to Go”), Founder and former CEO of Lumber Liquidators (currently known as LL Flooring), Sole Member, Manager and President of F9 Investments.
• Jason Delves, President and CEO of Cabinets to Go, former President of Wood Fiber Technologies, LLC and Beasley Flooring Products, LLC.
• Jill Witter, Chief Legal Officer and Secretary of F9 Investments, LLC, former Secretary of the Board of Directors of Lumber Liquidators (currently known as LL Flooring).

Mr. Sullivan added, “Given the LL Flooring Board’s lack of meaningful engagement with us over the past six months or any communication about its strategic review process, we have no choice but to assume that the Board is prioritizing its own self-interest over its fiduciary responsibility to maximize value for all LL Flooring shareholders. Accordingly, we have decided to nominate three candidates to the Board at the next annual meeting, who we believe collectively bring significant executive and public company board experience necessary to lead a successful exploration of potential strategic alternatives for the Company and who are committed to maximizing the value of LL Flooring for all shareholders.”