Ethan Allen Initiates CEO Search Amid Activist Pressure
Furniture retailer Ethan Allen has begun a search for its new CEO, following activist investor pressure to replace the current leadership. The company hired an executive search firm and aims to announce a successor by June 30, when outgoing CEO Farooq Kathwari's contract expires. Kathwari will remain on the board as a nonexecutive member until Ethan Allen’s 2027 annual shareholder meeting. The move follows activist investor Doug Bergeron’s push in August for a complete board overhaul and criticism of declining sales performance, including an 8.5% drop in Q4 net sales to $146.8 million. The company reported full-year net sales fell by 5.7% to $579.5 million. Analysts view the CEO search as a strategic step toward digital transformation and improved omnichannel retail strategies.
Topics: activist investor board change CEO search