Ethan Allen starts search for new CEO as activist investor pushes for changes
Ethan Allen Interiors Inc. has launched a search to replace its longtime CEO, who has led the company for nearly 40 years.
The furniture retailer and manufacturer said it has hired an executive search to identify both internal and external candidates to succeed Farooq Kathwari, with the board committeed to announcing a new CEO by June 30, 2027, the date on which his contract ends. Kathwari, who is 82, is Ethan Allen’s largest shareholder and has been chairman and CEO since 1988.
Kathwari will remain as a non-executive board member after June 30, stepping down at the company’s 2027 annual meeting. He will also continue to lead the company’s management team and execute Ethan Allen’s strategic priorities while supporting the board’s search and during the leadership transition.
Earlier this month, investor Doug Bergeron, who owns a more than 5% stake in Ethan Allen, launched a proxy battle for control of the board and his own search for a new CEO. Bergeron cited the company’s “apparent unwillingness” to address the need for a CEO succession.
“Ethan Allen has all the ingredients needed to compete and win in the home furnishings industry,” he wrote in a statement. “What it has lacked is leadership capable of putting its considerable assets to work. Shareholders have waited far too long for results and accountability under the 38-year tenure of entrenched chairman, president and CEO Farooq Kathwari and we are pleased to begin the process to deliver them.”
In a statement, Ethan Allan’s lead independent director David M. Sable, said the board is focused on “overseeing the company for the long-term benefit of all shareholders.”
“We have a leadership team that has built and continues to advance Ethan Allen’s designer-led, vertically integrated platform,” he said. "The succession process has a clear timeline that reflects the board’s commitment to an orderly, well-governed leadership transition."
