Lumber Liquidators Exec Out Amid Leadership Overhaul

Lumber Liquidators is reorganizing its executive staff after facing federal investigations, public criticism and lawsuits due to accusations that the company sold flooring that contains unsafe amounts of formaldehyde.

The leadership shakeup includes terminating William Schlegel, chief merchandising officer, this week. His final day with the company is Friday.

His termination came after president and CEO Robert Lynch resigned at the end of May and chief financial officer Daniel Terrell exited the company June 1.

Lumber Liquidators founder Thomas Sullivan is serving as interim CEO.

“I am really proud of the (Lumber Liquidators) team and I look forward to working with them and providing our customers with the best hardwood floors at the best prices as we have since I founded the company over 20 years ago,” Sullivan says in a document recently filed with the United States Securities and Exchange Commission.

Since the accusations came out in March, the company has been hit with scores of lawsuits arguing that formaldehyde contained in its Chinese-made laminate flooring was dangerous to consumer health. Lumber Liquidators has since stopped selling that type of flooring, but maintains that its products are safe.

In addition, Lowe’s has announced it is suspending sales of similar flooring.

CBS reported March 1 that Lumber Liquidators sold laminate flooring with higher levels of formaldehyde than permitted by California’s health and safety standards. A multi-agency federal investigation of the company is underway.

The flooring company, which is headquartered in Toano, Virginia, has more than 355 locations and is North America’s largest specialty retailer of hardwood flooring.

For more Lumber Liquidators coverage, read the following:

May 14: Financial Problems Piling Up for Lumber Liquidators

April 21: Lumber Liquidators Hit With Class-Action Lawsuits

March 23: Federal Organizations Investigate Lumber Liquidators Flooring

March 3: Lumber Liquidators Responds to ’60 Minutes’ Report

Sept. 27, 2013: Feds Raid Lumber Liquidators Headquarters