Why Must Members of the Board of Directors be Replaced
After the multiple scandals of 2015, the board of directors was hastily replaced. Current members have a lot of experience, but most of that experience is with companies which went bankrupt, or with companies that are irrelevant to the flooring or retail industry. We believe that these are not board members that will be effective at turning around this company or that even know how to turn around a company. They might be great people, but they are not a great fit for this business, and several members must be replaced.
Note that some members on the board have been serving for much longer and their tenure dates from before the scandals. While these members might be slightly more effective and have relevant experience, that does not change the fact that the company shares are currently at historic lows. If these members were actually “all stars” would they really have let the company fall as far as it has? The board needs new blood. A fresh, vibrant, and eager team of experienced members.
Tell Me More About The Problems
A list of the current board members can be seen here: http://investors.lumberliquidators.com/management-and-directors?cat=1
Members who must be replaced immediately:
Douglas T. Moore : Director at Lumber Liquidators since April 2006 (13 years). Currently President and Chief Executive Officer of Med-Air Homecare, a company with no functional website or phone number and almost no information to be found online. We contacted Lumber Liquidators Investor Relations with questions about Med-Air Homecare and were told that the company is in the process of “winding down.” IR seemed surprised and in fact thanked us for bringing the matter to their attention. From February 2012 through June 2012, Mr. Moore served as the Chief Merchandising and Marketing Officer at hhgregg, Inc (Bankrupt). Other experience: Senior VP at Sears (Bankrupt), Executive VP and Chief Merchandising Officer at Circuit City Stores (Bankrupt).
W. Stephen Cannon : Formerly senior vice president, general counsel and secretary of Circuit City Stores, Inc (Bankrupt) (Cannon left the company in May 2019)
David A. Levin : President and Chief Executive Officer of Destination XL Group, a struggling men’s apparel retailer which has not been profitable since 2013. Former director at Christopher & Banks Corporation, which is teetering on bankruptcy.
How Will We Replace the Board Members?
We have a list of strong candidates with extensive, relevant knowledge in the home improvement and flooring industries. Our candidates include industry veterans, who have shown entrepreneurial spirit and who have a proven track record of success both at operations and at turning around struggling companies. Our candidates are winners who know what they are doing and who will take an active interest in turning this company around. We can drive success from the top down. We will release more information in the coming days.