Activist Launches CEO Search at Ethan Allen, Nominates Five Board Candidates
ETD sits 23% above its 52-week low of $18.28.
Summary
Activist investor Doug Bergeron, holding a 5.2% stake, has launched an independent CEO search for Ethan Allen and nominated five board candidates. This escalates the proxy fight already underway from DGB Investment, which had nominated six directors. Bergeron's move signals a direct challenge to the 38-year tenure of Chairman, President, and CEO Farooq Kathwari. The company's fiscal 2026 results showed significant declines in sales and earnings, and the stock is down over 26% in the past year. The CEO search and board contest will be decided at the upcoming annual meeting, where shareholders will choose between the incumbent board and the activist slate.
At the time of this announcement, ETD was trading at $22.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $547.1M. The 52-week trading range was $18.28 to $30.11. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.