LL Flooring Files Investor Presentation Highlighting Decisive Actions Taken to Drive Growth and Position the Company for Long-Term Success

Company’s Highly Engaged and Qualified Directors are Best Positioned to Oversee the Company’s Path Forward

Thomas Sullivan is Pushing Personal Agenda With His Board Nominees Given His Ongoing Interest in Buying Company

Urges Shareholders to Vote the Universal WHITE Proxy Card Today “FOR” ONLY LL Flooring’s Three Highly Qualified Director Nominees

LL Flooring Holdings, Inc. (“LL Flooring” or “Company”) filed an investor presentation with the U.S. Securities and Exchange Commission in connection with its 2024 Annual Meeting of Stockholders on July 10, 2024. The presentation is available at https://www.votellflooring.com/company-resources.

Highlights of the presentation include:

• The LL Flooring Board (the “Board”) and leadership team have been taking and continue to take decisive actions to position the Company for success.
  • The Board worked to address product and sourcing issues, taking steps to repair damage to the Company’s credibility and reputation that occurred while Thomas Sullivan served as Executive Chair and Interim CEO and had direct oversight over sourcing initiatives.
  • The Board oversaw the recruitment of a refreshed senior leadership team to drive transformation and help develop a new strategy, including recent setting of five strategic priorities to position the Company to capture market opportunity and drive growth and value creation.
  • The Board and leadership team are working to navigate recent macroeconomic challenges that have followed a period of consistent, solid financial performance.
• The Board has been conducting a thorough review of strategic alternatives to maximize shareholder value, including evaluating the potential of a sale of the Company.
  • Since August 2023, with the assistance of financial and legal advisors, the Board has been conducting a typical process for the sale of a public company?.
  • The Board has approached this process with an open mind and focus on fairly measuring offers against the Company’s standalone plan.
  • The Board is committing the necessary time and care to constructively evaluate all alternatives in a complex environment, and has engaged with potential bidders on a level playing field since the first receipt of an unsolicited non-binding Indication of Interest in January 2022, including with Mr. Sullivan’s firm F9 Investments.
• ?LL Flooring is well-positioned to capitalize on improving market conditions and continue building on the positive change underway.
  • Under the Board’s oversight, the leadership team is positioning LL Flooring to capitalize on the anticipated industry tailwinds and larger market opportunity by expanding further into the soft-surface market and pursuing Pro customers. This includes optimizing LL Flooring’s existing retail footprint, relocating underperforming stores and closing unprofitable stores to drive profitability.
  • The Company has been implementing a strategy to increase brand awareness and deliver a more consistent end-to-end customer experience across the omnichannel network, which is gaining traction and driving profitability.
• The LL Flooring Board has highly qualified and independent directors; there is no need for further change at this time.
  • The LL Flooring Board comprises nine highly qualified and engaged directors, eight of whom are independent, who have the right mix of skills and experience to effectively oversee the strategic direction of LL Flooring.
  • The LL Flooring directors that are up for re-election have made significant contributions to the Company, collectively serving on all four of the Board’s committees and overseeing the development of the Company’s five strategic priorities as well as execution of the strategic alternatives process.
• Mr. Sullivan and his nominees bring no incremental value to the Board.
  • Electing Mr. Sullivan and his two other nominees would remove superior talent and critical skills from the LL Flooring Board, and risk derailing the progress being made in executing the Company’s strategy and completing the strategic alternatives process.
  • The two additional candidates put forth by Mr. Sullivan have longstanding relationships with him, and currently work for F9 Investments or Cabinets To Go, the latter of which competes with LL Flooring.
  • Mr. Sullivan and his two other candidates have limited to no demonstrated knowledge of critical current corporate governance issues, lack critical skills in current business issues facing the Company and none of Mr. Sullivan’s candidates except for Mr. Sullivan himself have any prior experience serving on the Board of a public company.
• Mr. Sullivan is conflicted and pushing a personal agenda to opportunistically acquire LL Flooring.
  • Mr. Sullivan may be attempting to force a sale of LL Flooring to himself at a price that may undervalue the Company by installing himself and two of his hand-picked employees on the Board.
  • During the Company’s strategic review process, Mr. Sullivan refused to enter into a standard confidentiality provision, to which other interested parties agreed.
  • During an attempt by the Board to reach a proposed compromise in this proxy contest by appointing one of his nominees, Mr. Sullivan’s representatives requested as part of such compromise that he receive diligence access to the Company.
• Mr. Sullivan has a track record that shareholders should question.
  • Mr. Sullivan has been involved in litigation with companies he has founded, including a civil racketeering derivative complaint and litigation related to violating the terms of a Memorandum of Understanding signed between Cabinets To Go (CTG) and LL Flooring under which CTG would not sell flooring in competition with LL Flooring.
  • Mr. Sullivan made public statements about his interest in acquiring LL Flooring and then reversed those statements while timing his trades of LL Flooring stock in a manner that benefitted his own personal portfolio and whipsawed other investors.
  • During Mr. Sullivan’s tenure as Executive Chairman and/or Interim CEO, with his direct oversight of sourcing, the Company was raided by the FBI for potential environmental crimes, pleaded guilty to charges related to sourcing of illegally logged timber from Far East Russia and false statements on Lacey Act declarations, and had products fail testing by the California Air Resources Board for formaldehyde emissions.
  • From the time of the FBI raid in 2013, when Mr. Sullivan was serving as Executive Chairman, to the time of Mr. Sullivan’s departure from the Board and Company, LL Flooring’s stock price declined by ~86%, representing the destruction of ~3 billion in market capitalization¹.

About LL Flooring

LL Flooring is one of the country’s leading specialty retailers of hard-surface flooring with more than 430 stores nationwide. The Company seeks to offer the best customer experience online and in stores, with more than 500 varieties of hard and soft surface floors featuring a range of quality styles and on-trend designs. LL Flooring’s online tools also help empower customers to find the right solution for the space they’ve envisioned. LL Flooring’s extensive selection includes waterproof hybrid resilient, waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement. LL Flooring stores are staffed with flooring experts who provide advice, Pro partnership services and installation options for all of LL Flooring’s products, the majority of which is in stock and ready for delivery.

Contact:

Bruce Williams – Investor Relations, ICR – ir@llflooring.com – (804) 420-9801

Source: LL Flooring Holdings, Inc.