LL Flooring Mails Letter to Shareholders Highlighting Thomas Sullivan’s Track Record of Value Destruction

LL Flooring Board Possesses Relevant Expertise and Skillsets Necessary to Oversee the Company’s Path Forward

During Mr. Sullivan’s Time as Executive Chairman and Interim CEO, LL Flooring’s Share Price Declined Approximately 86% and Company Lost Approximately $3 Billion In Market Capitalization ¹

Mr. Sullivan’s Nominees Risk Company Taking Significant Step Backwards

LL Flooring Holdings, Inc. (“LL Flooring” or “Company”) mailed a letter to shareholders in connection with the Company’s upcoming 2024 Annual Meeting of Stockholders.

The letter contains critical information for shareholders’ decision making, including highlighting how the LL Flooring Board and management team have taken and continue to take action to implement change while Thomas Sullivan and his two other director nominees risk the Company taking a significant step backwards. The Board continues to believe that replacing three of the LL Flooring Board’s nominees is not only unnecessary, but would remove superior talent, critical skills and three independent directors from the Board and risk derailing progress being made at the Company.

The LL Flooring Board of Directors unanimously urges shareholders to vote using the universal WHITE proxy card today “FOR” only LL Flooring’s three highly qualified director nominees.

Visit www.VoteLLFlooring.com, to find additional information and resources to help shareholders vote at the 2024 Annual Meeting of Stockholders.

The full text of the letter follows:

Dear Fellow Shareholders,

With LL Flooring’s 2024 Annual Meeting of Stockholders quickly approaching, you are being asked to make an important decision that will affect the future of the Company.

The LL Flooring Board of Directors 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. More specifically, your Board’s nominees — Douglas T. Moore, Ashish Parmar and Nancy M. Taylor — are essential to the Company capturing opportunities ahead and to maximizing value.

Thomas Sullivan is attempting to replace three of your Board’s nominees – change that we believe is not only unnecessary but would remove critical experience from your Board and risk derailing progress being made. In our view, Mr. Sullivan has a highly questionable ethical and leadership track record and is pushing a personal agenda that is not in the best interests of all the Company’s shareholders.

LL Flooring Board and Management Team Have Taken and Continue to Take Action to Implement Change	Mr. Sullivan’s Nominees Risk Taking Significant Step Backwards
The Board has addressed significant product, sourcing and reputational issues that occurred while Mr. Sullivan served as Executive Chair and/or Interim CEO and had direct oversight of the Company’s sourcing: The Board has taken steps to repair damage to the Company’s credibility, settling litigation and paying fines related to product quality, sourcing issues and securities fraud that occurred under Mr. Sullivan’s leadership. The Board has brought on new senior leadership and has been overseeing management in refinement of the Company’s strategy.	Mr. Sullivan has a highly questionable ethical and leadership track record: As a result of actions taken by prior management while serving under the oversight of Mr. Sullivan as Executive Chairman and during the time Mr. Sullivan served as Interim CEO, the Company’s previous name and branding of “Lumber Liquidators” was permanently tarnished. From the time of an FBI raid in 2013 related to potential environmental crimes through Mr. Sullivan’s departure from the Board and Company, LL Flooring’s share price declined approximately 86% and the Company lost approximately $3 Billion in market capitalization.2
The Board is overseeing management’s execution of a transformation plan to expand product offerings and customer segments and capitalize on market opportunities: The Board and management team have identified and are executing on five strategic priorities to drive growth and capitalize on anticipated industry tailwinds and the larger opportunity in the current environment. This includes expansion into Pro and soft surface and transitioning the Company into a modern, customer-centric brand supported by innovative tools and digital platform integration.	Mr. Sullivan has indicated he is seeking to return LL Flooring to its previous strategy, limiting the Company’s market opportunities and ability to compete effectively: Under Mr. Sullivan’s leadership as Executive Chairman and Interim CEO, LL Flooring (then Lumber Liquidators) restricted its offerings to only hardwood and laminate flooring and the Do-It-Yourself customer, preventing the Company from capitalizing on the soft flooring and Pro market opportunities.
The Board is conducting a thorough review of strategic alternatives: With the assistance of financial and legal advisors, the Board is conducting a typical process for the sale of a public company and remains committed to choosing the path that maximizes value. The Board has engaged with numerous potential counterparties on a level playing field and is committing the necessary time and care to constructively evaluate alternatives in a complex environment.	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. Mr. Sullivan has declined to participate in the strategic review process by refusing to sign a customary confidentiality agreement.

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.