Flooring Chain's Sale: A Step Forward or a Faux Pas?

LL Flooring, once known as Lumber Liquidators, has signed an agreement with F9 Investments to sell off its business. The going-concern sale includes 219 stores, inventory at those locations and the company's distribution center in Sandston, Virginia. The transaction is expected to wrap up by the end of September. But hold on a sec - wasn't this company just bought out by founder Tom Sullivan last year for $3 per share? And now he's selling it off again? Seems like a bit of a bait-and-switch, no? It's worth noting that LL Flooring filed for Chapter 11 bankruptcy protection in July. So clearly the business was struggling before this deal. But does that mean it's wise to trust F9 Investments with turning things around?The flooring retailer reported first quarter results and suspended its outlook for the rest of the year last month, so we know they were in a bind financially. But has LL Flooring considered all other options before resorting to this sale? Could there have been a way to restructure or find new leadership without handing over the keys? Here's what we do know: Sullivan withdrew his $3-a-share offer for the company back in May, after attempting an acquisition of the flooring chain in 2019. So clearly he had an interest in the business at one point. But now F9 is stepping in to take over operations, which begs the question - what's their track record? Have they shown success turning around struggling retailers before? We should dig deeper into this mysterious investor group to see if they're up for the task. In any case, it looks like LL Flooring will be under new ownership soon. But only time will tell if this sale was a savvy business move or a short-sighted decision that'll leave customers and employees high and dry.