Lumber Liquidators Plunges After U.S. Raids OfficesDavid McLaughlin
Lumber Liquidators Holdings Inc., the hardwood flooring retailer, dropped the most in three months in New York trading after announcing that federal officials had executed search warrants at its offices in Virginia.
The searches yesterday by U.S. Immigration and Customs Enforcement and the Fish and Wildlife Service were related to importation of wood-flooring products, the Toano, Virginia-based company said in a statement today. The company said it “takes its sourcing and compliance very seriously” and is cooperating with the investigators.
Lumber Liquidators fell 5.2 percent to close at $107.13 in New York, the biggest drop since June, recovering from a plunge of as much 13 percent. The company reported revenue of $813 million in 2012.
WWBT-TV, a Richmond, Virginia, NBC station, said on its website that the raid was related to the importation of protected wood from the habitat of the Siberian tiger. The wood originates in Russia and is processed in China, and government agents suspect it was declared as coming from other countries, the station reported, without saying how it obtained the information.
ICE spokesman Brandon Montgomery said no one was arrested yesterday during the search and declined to comment on “what if anything” was removed from the offices. Special agents with ICE homeland security investigations, Fish and Wildlife, and the Justice Department executed the warrants at a company location in the Richmond area and at its headquarters, he said in an e-mail.
“The warrants are sealed and no further details are available at this time of the investigation,” Montgomery said.