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.