Lumber Liquidators promotes marketing head, cuts merchandising chief

Toano, Va. – The executive shakeup continues at Lumber Liquidators as the company integrates the leadership of its merchandising and marketing departments.Marco Q. Pescara, the company's chief marketing officer since 2006, has been promoted to serve as chief merchandising and marketing officer effectiveJune 19.

Pescara will lead the company's marketing and merchandising functions. The employment ofWilliam K. Schlegel, current chief merchandising officer, will be terminated effectiveJune 19.

“By coordinating the merchandising and marketing departments under his leadership, I believe we will be better situated to identify and satisfy customer demand for our assortment of flooring products and accessories," Thomas D. Sullivan, founder and acting CEO, said.

Lumber Liquidators has gone through significant executive changes since a March 2015 “60 Minutes” expose that alleged that the company’s laminate flooring made in China contained high levels of formaldehyde. Lumber Liquidators denies the allegations, even as the Justice Department has said it intends to file criminal charges in the matter.

Former CEO Robert Lynch unexpectedly resigned as both CEO and director of the company in May. Ray Cotton, chief compliance officer of Lumber Liquidators, resigned from the company earlier this month. Lumber Liquidators reported a net loss in the first quarter of 2015 and warned that sales and margins would remain depressed at least through April as it dealt with the allegations.