To smooth a potential handoff, DGB invited Farooq Kathwari to take on a chairman emeritus role if its slate wins. The position would sit outside the board and function as an advisory post. DGB said the offer is meant to acknowledge Kathwari's long tenure leading the furniture maker.
He has served as chairman and CEO since the late 1980s, and because Ethan Allen expects to have a new CEO in place by mid 2027, he has started easing out of the job. The invitation does not change DGB's intent to replace all five directors, including Kathwari.
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DGB founder Douglas Bergeron revealed his stake and kicked off a campaign in August, aimed at removing Kathwari and installing a new board, arguing the company's performance has suffered under current leadership. He put his own name forward as a director candidate and began running a separate CEO search. Bergeron, who is based in Park City, Utah, previously held the title of co-managing partner at Hudson Executive Capital.
Ethan Allen has argued its nominees have the right expertise and that switching out directors during a CEO transition is risky. The company did not return requests for comment right away.
DGB linked to an investor deck that lays out plans to upgrade operations and technology, refresh product and merchandising, and revamp digital and retail experiences. With the annual meeting set for Nov. 4, the question is whether voters want a clean sweep of the board while a CEO change is already in motion. That decision could shape how quickly any operational changes happen and what kind of growth story shows up in your portfolio screens next.
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