Danbury Coronavirus: Ethan Allen Furloughs Employees, Slows Ops

DANBURY, CT — Ethan Allen Interiors Inc. has announced its plan in response to the new coronavirus health crisis. The action involves the furlough of approximately 70 percent of its global workforce. Impacted employees will continue to receive enrolled benefits for up to two months.

The company, headquartered in Danbury, is temporarily closing most of its manufacturing facilities, effective immediately. Customers can schedule in-person appointments with the Company's design consultants and interact virtually with them through Live Chat online at www.ethanallen.com.

"We are taking a major workforce reduction through temporary layoffs," said Farooq Kathwari, Ethan Allen's chairman, president and CEO in a news release. "We take very seriously the responsibilities we have with our associates, customers and all shareholders. Our objective is to persevere through this, get back to work, open our 200 North American design centers and restart our North American manufacturing and logistics operations."

Kathwari will forego his salary through June 30. All senior management will have their salary reduced up to 40 percent, and other salaried employees will have their pay cut up to 20 percent, through June 30. The company’s Board of Directors will reduce their cash compensation by 50 percent, also through June 30.

Additionally, Ethan Allen is taking the following actions to manage cash flow, control expenses and facilitate its return to business once it resumes operations:

• Elimination of all non-essential operating expenses so that operations are maintained at minimum levels.
• The delay of capital expenditures.
• Temporary halt of the share repurchase program.
• Re-evaluation of its regular quarterly cash dividend.

"As you know, we are going through unprecedented times. Our enterprise over the past 88 years has gone through the Great Depression, a World War and several recessions, and we have come out stronger and more vibrant each time. The coronavirus crisis is unique and severe. Never in our history, in fact in world history, has mankind been asked to stay locked up in their homes and businesses asked in mass to close down their operations," Kathwari said.