NEW YORK (TheStreet) -- Shares of Lumber Liquidators (LL) are falling by 16.50% to $21.10 at the start of trading on Thursday morning, after the hardwood flooring retailer announced that CEO Robert Lynch has "unexpectedly" stepped down from his post at the helm of the troubled company.
Lumber Liquidators says it will conduct a national search for Lynch's replacement and until one is found company founder Thomas Sullivan will step in as acting CEO.
"I am really proud of the LL 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 said in a statement.
Lumber Liquidators has been struggling since an early March report by CBS' "60 Minutes" claimed that the hardwood flooring materials the company receives out of China has a higher than legally allowed amount of the toxic chemical formaldehyde.
Following the report Lumber Liquidators stood behind the safety of its products, however earlier this month the company said it was immediately stopping all sales of its China-made laminate flooring.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "I have said to stay away and I reiterate the same view I have had for 30 points now."
Separately, TheStreet Ratings team rates LUMBER LIQUIDATORS HLDGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: