F9 Investments Highlights LL Flooring’s Dangerous Pattern of Underperformance and Failed Operational Strategy Due to Ineffective Leadership
Under Current Board, LL’s Stock Price is Down More Than 63%, 93%, and 83% on a 1-, 3-, and 5-Year Basis, Respectively
F9 Urges Shareholders to Vote the GOLD Proxy Card “FOR” Its Three Highly Qualified Director Nominees –
F9 Files Definitive Proxy Materials and Mails Letter to LL Flooring Shareholders
F9 Launches www.LLGroove.com
In connection with the filing of definitive proxy materials, F9 is mailing a letter to LL Flooring’s shareholders urging them to hold the Board accountable for the Company’s abysmal stock price performance on an absolute and relative basis, an ineffective operational strategy, tremendous waste of capital, and flawed strategic review process, among many other failures. The letter also highlights F9’s three highly qualified director nominees, who will bring the experience, focus, relevant industry expertise and proper oversight required to put
The full text of the letter is below and available at www.LLGroove.com.
Dear Fellow LL Flooring Shareholders,
As the largest shareholder in
Simply put, shareholders deserve an immediate change of course. Accordingly, we have nominated three highly qualified directors to LL Flooring’s Board in connection with the upcoming 2024 Annual Meeting of Shareholders, scheduled for
By way of background, F9 is a sophisticated private investment firm with a strong track record of creating enduring value at leading building products and home improvement businesses, including
So, why are we here?
We are committed to halting the Company’s dangerous downward spiral and restoring the business to its former prominence and profitability by instituting meaningful change to LL’s Board. We are therefore nominating three highly qualified directors –
LL Flooring’s current Board has overseen abysmal stock price performance on an absolute and relative basis, an ineffective operational strategy, tremendous waste of capital, and flawed strategic review process, among many other failures.
LL Flooring’s financial performance continues to deteriorate rapidly across all metrics, including sales, profitability, and liquidity. Buried deep in its latest 10-Q filing with the
All the while, in 2023,
Moreover, the Company’s
The Board has disclosed that it has received multiple premium offers from bona fide bidders, including F9, only to reject or ignore them as the Company’s share price craters.
WHAT IS GOING ON IN THE LL BOARDROOM?
We believe the only way to protect and enhance the value of your investment is to elect F9’s three director nominees –
F9’S NOMINEES ARE IDEALLY POSITIONED TO ADDRESS LL’S CONSIDERABLE STRATEGIC, FINANCIAL, OPERATIONAL, AND GOVERNANCE CHALLENGES
Most importantly, as independent directors chosen by shareholders who have an “ownership mentality,” the F9 nominees would bring greater focus, alignment, and accountability to the boardroom. We believe that the election of these three individuals will assist in holding management and the Board accountable for their actions and ensure that the Company operates with a long overdue focus on shareholders by committing to driving performance, maintaining strong corporate governance, and creating meaningful shareholder value.
F9’S NOMINEES PROVIDE EXPERTISE, EXPERIENCE AND A COLLABORATIVE APPROACH TO ASSIST LL’S BOARD IN RESTORING THE COMPANY TO PROMINENCE
VOTE ON THE GOLD PROXY CARD TODAY “FOR” F9’S NOMINEES
Shareholders must act decisively to safeguard their investment. EVERY VOTE MATTERS NO MATTER HOW MANY SHARES YOU OWN. We urge shareholders to protect the value of their investment by voting for our nominees using the GOLD proxy card.
You can vote by Internet or by signing and dating the enclosed GOLD proxy card or GOLD voting instruction form and mailing it in the postage paid envelope provided. Do NOT vote using any white proxy card or voting instruction form you receive from
If you have any questions about how to vote your shares, please contact our proxy solicitor, Campaign Management, by telephone 1-(855) 264-1527 (shareholders) or (212) 632-8422 (banks & brokerages) or email at info@campaign-mgmt.com.
For more information, including voting instructions, visit our website www.LLGroove.com.
With your vote, we will be one step closer to ensuring
We thank you for your support.
Sincerely,
|
|
|
DISCLAIMER
Except as otherwise set forth in this press release, the views expressed in this press release reflect the opinions of
This press release is provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security nor as a recommendation to purchase or sell any security. Certain of the Participants (as defined below) currently beneficially own shares of the Company. The Participants and their affiliates may from time to time sell all or a portion of their holdings of the Company in open market transactions or otherwise, buy additional shares (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls, swaps or other derivative instruments relating to such shares.
Some of the materials in this press release contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” “plan,” “once again,” “achieve,” and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on current expectations, speak only as of the date of these materials and involve risks, uncertainties and other factors that may cause actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of F9.
The estimates, projections and potential impact of the opportunities identified by F9 herein are based on assumptions that F9 believes to be reasonable as of the date of this press release, but there can be no assurance or guarantee (i) that any of the proposed actions set forth in this press release will be completed, (ii) that the actual results or performance of the Company will not differ, and such differences may be material, or (iii) that any of the assumptions provided in this press release are accurate.
F9 has neither sought nor obtained the consent from any third party to use any statements or information contained herein that have been obtained or derived from statements made or published by such third parties, nor has it paid for any such statements. Any such statements or information should not be viewed as indicating the support of such third parties for the views expressed herein. F9 does not endorse third-party estimates or research which are used herein solely for illustrative purposes.
Important Information
THE PARTICIPANTS STRONGLY ADVISE ALL STOCKHOLDERS OF THE COMPANY TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER PROXY MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE ON THE SEC’S WEBSITE AT WWW.SEC.GOV AND F9’S WEBSITE AT WWW.LLGROVE.COM. THE DEFINITIVE PROXY STATEMENT AND ACCOMPANYING PROXY CARD WILL BE FURNISHED TO SOME OR ALL OF THE COMPANY’S STOCKHOLDERS. STOCKHOLDERS MAY ALSO DIRECT A REQUEST TO F9’S PROXY SOLICITOR, CAMPAIGN MANAGEMENT, 15 WEST 38TH STREET, SUITE #747,
Information about the Participants and a description of their direct or indirect interests by security holdings or otherwise can be found in the Definitive Proxy Statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240531864299/en/
INVESTOR AND MEDIA CONTACTS
Investors:
Campaign Management
(212) 632-8422
michael.fein@campaign-mgmt.com
Media:
(212) 257-4170
F9Investments@gasthalter.com
Source: