The U.S. Consumer Product Safety Commission said Thursday that Lumber Liquidators has agreed to not sell its existing inventory of Chinese-made laminate flooring.
Lumber Liquidators has struggled to convince customers that its flooring is safe after hedge fund manager Whitney Tilson told CBS' "60 Minutes" about the levels of formaldehyde in the company's Chinese-made flooring that didn't comply with California's health and safety standards. Tilson covered his short in December, after explaining that he received information that the company may not have known it was selling laminate with elevated levels of formaldehyde.
The company has previously said it hasn't sold its Chinese-sourced laminate since May of last year and that it has taken "meaningful steps" to boost compliance and reestablish trust. The CPSC said Thursday that the company won't be able to sell, dispose or transfer the inventory in the future without the commissions approval.