Bassett Furniture announces restructuring plan

The company also announced a restructuring plan to more right-size its cost structure. The five-point plan includes: Driving organic growth through Bassett-branded retail locations, omni-channel capabilities, and enhanced customization positioning to expand dedicated distribution footprint. Rationalizing U.S. wood manufacturing from two locations into one primary location, supported by a small satellite operation. Optimizing inventory and dropping unproductive lines. Improving overall cost structure and invest capital in refurbishment of current retail locations. Lastly, closing the Noa Home e-commerce business. “Bassett Furniture has a long history of weathering economic cycles, such as the inflationary environment and slow housing market we’re experiencing in 2024 – factors that led to soft demand in our second quarter,” explained Spilman. “The business climate has remained difficult through the first six months of this year and may not improve in the near future. Accordingly, we are committed to returning to profitability by running a leaner operation, with priority focus on both our inventory position and the overall cost structure. We believe that our restructuring plan, expected to improve our bottom line between $5.5 million and $6.5 million on an annual basis, coupled with our solid balance sheet, puts us in a position to be a considerably stronger company when customer demand inevitably improves. I’m particularly pleased that our Board believes in our ability to improve operations and continue our strong cash generation by increasing our quarterly dividend by 11%.”