Longtime CEO of Ethan Allen ousted; former Neiman Marcus exec named interim leader
Ethan Allen Interiors Inc. has started its next chapter following a major leadership shakeup.
The struggling furniture retailer and manufacturer said that Farooq Kathwari, who has served as CEO and chairman since 1988, is “no longer with the company.” His exit follows ongoing pressure from activist investor Doug Bergeron, former CEO of VeriFone Systems, who had called for his departure and who earlier this month secured control of the board.
Ethan Allen named Stefanie Tsen Ward, former chief integrated retail and customer officer of Neiman Marcus Group, as interim CEO. She will oversee Ethan Allen’s day-to-day operations and begin execution of its strategic reset while the board conducts a search for a permanent CEO.
Ward, who is credited with helping to transform Neiman Marcus and previously held senior roles at Sephora, was one of Bergeron's three director nominees that investors backed earlier this month. (Kathwari failed to be reelected.)
The others are former eBay strategy chief Kristine Miller and former Wayfair chief commercial officer Steve Oblak. Two of the company’s own nominees, Maria Eugenia Casar and Tara Stacom, remain on the board.
Bergeron and Miller have been named executive chairman and lead independent director, respectively.
The shakeup comes as Ethan Allen has struggled with declining retail and wholesale sales in recent years. In its most recent quarter, ended Sept. 30, net sales fell 12% to $130 million. Retail sales fell 11% and wholesale was down over 9%.
“Today marks Day One of our 100 day plan,” stated Bergeron. “Every one of our new directors are working on the ground in Danbury rolling up their sleeves with management to identify early wins we can actualize now. This week we also are visiting our manufacturing facilities in Vermont, Virginia and North Carolina to meet the people who make our products great.”
Ethan Allen said its newly-constituted board brings together complementary experience in modern retail, brand revitalization, digital and omnichannel execution, home furnishings, financial oversight and public company governance.
“I am energized by the conversations already underway and to work alongside designers across our network of design centers and our HQ team to bring fresh ideas to life," said interim CEO Ward. "Together we will build a culture of openness, collaboration and accountability, moving with the speed and urgency needed to drive Ethan Allen forward.”
