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A former Lowe’s executive is now leading Lumber Liquidators as CEO, and he is planning on a recovery for the controversy-embroiled flooring discounter.
Dennis R. Knowles, who Lumber Liquidators hired as chief operating officer in February, was promoted to CEO this month. Prior to working for Lumber Liquidators, Knowles served as chief store operations officer for Lowe’s.
“As CEO, I am focused on executing on our strategic initiatives and returning our company to growth and profitability,” Knowles says.
Knowles is now responsible for leading Lumber Liquidators’ recovery from extensive financial damage due to March 2015 accusations that the company sold laminate flooring containing unsafe amounts of formaldehyde.
He became Lumber Liquidators’ third CEO in about 18 months when he replaced John Presley, who had been CEO since Nov. 16, 2015. Presley had taken over as CEO from company founder Thomas Sullivan. Sullivan served in the role temporarily during an executive leadership overhaul that began shortly after the company’s Chinese-made laminate flooring woes began in March 2015.
Lumber Liquidators has dealt with federal investigations, consumer lawsuits and accusations that its flooring products harmed people’s health. In addition, the Centers for Disease Control and Prevention concluded in June 2016 that the flooring could decrease air quality where it was installed, potentially causing breathing problems and increasing cancer risks for people.
As a result, the company has experienced heavy financial losses because of the costs of legal fees and air-quality test kits for consumers, as well as struggling stock values and retail sales.
Lumber Liquidators’ net loss for third-quarter of 2016 was $18.4 million, as compared to a net loss of $8.5 million for the same period in 2015, the company reported in October.
