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Lumber Liquidators founder drops take-private bid

Lumber Liquidators Holdings Inc. founder Thomas Sullivan will no longer push through with his plan to take the company private, Bloomberg News reported Sept. 13.

Sullivan reportedly said in an interview that the company's stock price had gone too high and that it had declined to engage in discussions with him.

The Lumber Liquidators founder previously held a 5.96% stake in the company through his private equity firm F9 Investments LLC, but he has since sold some of his shares and now holds a 1.6% stake, according to a Sept. 13 SEC filing.

Sullivan will continue to monitor the situation, Bloomberg reported. "Unless there is major change in the board and management, I'm sure there will be another opportunity for us," he reportedly said.

A spokesperson from Lumber Liquidators did not comment on Sullivan withdrawing his privatization offer but said that the company is aware of his trimmed stake. The spokesperson added that Lumber Liquidators is executing a transformational strategy along with cost mitigation initiatives to boost shareholder value and improve profitability.

Shares of the flooring retailer closed down 13% to $9.77 on Sept. 13 following the news.