Lumber Liquidators Holdings Inc (NYSE:LL) is not willing to take the attacks on the quality of its products lying down. The company has decided to act with the date set on March 12 for what it calls Business Update. Lumber intends to use the opportunity to set the records straight about its liquidity and claims that its flooring products contain higher levels of toxin.
Lumber Liquidators Holdings Inc (NYSE:LL) has been fighting to save its image following a damning television report two weeks ago. On the program known as “60 Minutes” on CBS, the company was accused of selling flooring products that contain larger amounts of formaldehyde than what is allowed in California. The report claimed that Lumber’s laminate flooring imported from China tested for more than six times the accepted level of the cancer causing chemical.
On its part, Lumber Liquidators Holdings Inc (NYSE:LL) vehemently denied the allegations. The company said that the report also ignored facts that show its products to be safe. Additionally, Lumber has blamed the damaging report on short-sellers who seek to benefit from a plunge in its stock price.
Tackling safety allegation
It has been cited that sales representative at Lumber have in recent times sought to contain the situation through scripts addressed to customers. The scripts tell customers that the claims raised about the quality of their products are simply malicious because the aim is to scare away customers.
However, Lumber Liquidators Holdings Inc (NYSE:LL) will be taking the fight to save its image to a higher level on March 12 through a business update. The company will obviously present what it considers evidence to exonerate it in the safety violation charges.
Besides the issue of product quality, Lumber Liquidators Holdings Inc (NYSE:LL) will also talk about its liquidity situation, which has also caused confusion. The company claims that its cash position is enough to address its financial needs for the foreseeable future.
Shares of Lumber have declined more than 51% since the beginning of this year.