LL Flooring saw a decline in its shares as founder Tom Sullivan decided to withdraw his offer to acquire all outstanding shares of the company. This prompted a 10% slide in the stock price to $3.88 during early trading. Over the past year, LL Flooring shares have fallen by 62% and by 31% this year.
The withdrawal was attributed to LL Flooring’s deteriorating financial and operational performance, which ultimately led to an eroding value. This information was disclosed in a securities filing on Thursday.
In May, Sullivan’s F9 Brands subsidiary revealed that they had acquired a 9.4% stake in the company and offered to buy out the remaining portion of the company for $5.76 per share. Sullivan’s plan involved potentially merging LL Flooring with Cabinets to Go, another subsidiary of F9 Brands that he founded. At that time, the company’s board expressed that they were considering the offer.
Interestingly, LL Flooring shares experienced a significant increase on Tuesday after the company expressed its interest in exploring a potential sale or merger as part of a strategic review.