Ethan Allen Launches CEO Search to Succeed Farooq Kathwari by 2027; Activist Investor Calls Move 'Too Little, Too Late'

Ethan Allen Interiors Inc. (ETD) announced Monday it has begun searching for a successor to longtime CEO Farooq Kathwari, who has led the Connecticut-based furniture retailer for nearly 40 years. The board committed to naming a new CEO no later than June 30, 2027, when Kathwari's contract expires. He will remain a nonexecutive board member until the 2027 annual meeting. The announcement follows pressure from activist investor Doug Bergeron, who owns over 5% of the company and launched his own CEO search in early September, citing the board's "apparent unwillingness" to address succession. Bergeron also nominated an alternate slate of six board candidates in August. Bergeron called the company's acknowledgment "too little, too late," saying a board of Kathwari loyalists is "utterly unqualified" to select the next CEO.