Bassett Furniture News Release
May 11 2020 - 9:55AM
Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced
that it has continued reopening its stores, bringing the total
reopened for business to 43 of its 66 corporate-owned stores, six
of which are open to customers by appointment only. The Company
expects to reopen 19 more stores by the week of May 18, 2020.
The remaining four stores, which are located in Maryland and New
Jersey, will not reopen until state and local authorities permit.
Due to the level of disruption in the home
furnishings industry, coupled with the uncertainty both of the pace
at which the U.S. economy will recover and the level to which it
will recover, Bassett also announced the following:
- A 25% permanent reduction in
workforce, representing approximately 600 employees, throughout the
retail, wholesale and logistics operations;
- That 42% of the remaining workforce
will remain on furlough through at least May 31, 2020 with the
Company paying for health care benefits; and
- The permanent closure of the Grand
Prairie, Texas upholstery manufacturing operation with production
shifted to the manufacturing location in Newton, North
Carolina.
The Company will continue to evaluate the pace
of business to determine when to bring back the furloughed
employees. No significant severance or restructuring charge is
expected due to the above.
“We are living through an unprecedented period
of time in the life of our country,” said Rob Spilman, Chairman and
Chief Executive Officer. “The short-term effects of the global
pandemic have been tragic, not only from a national health
perspective but also in terms of our collective economic
well-being. Closer to home, Bassett’s wholesale revenue from March
23rd through the end of April declined by more than 80%.
Accordingly, today’s announcement of the permanent downsizing of a
large portion of our workforce and the extension of previously
communicated furloughs reflects the new reality in which we must
operate. These decisions were made regretfully but with the
long-term survival of the Company in mind. It is our hope that as
our business improves, we will be able to return a significant
number of our furloughed associates to their former positions and
to our payroll.”
“While it is impossible to predict the rate at
which sales will return to anywhere near ‘normal’ levels, we have
seen incoming wholesale orders improve in each of the past four
weeks,” observed Spilman. “Meanwhile, we have taken the eight weeks
of disruption to our routine to introspectively examine many facets
of our business including the levels of the raw material inventory,
total product line skus, architecture of our custom furniture
programs, and user experience on our website. While we remain
committed to our signature custom capabilities, we acknowledge that
this form of selling becomes compromised when our fleet of brick
and mortar retail stores is forced to close. Furthermore, we
believe that the omnipresent migration to digital commerce
accelerated during this highly unusual period of ‘stay at home’
behavior. We are therefore working to streamline our custom
offerings and the manner in which they are presented on the web
with the intention of generating more e-commerce and store sales
alike. In this regard, we are striving to turn the
unfortunate elements of today’s announcement into the foundation of
a leaner, more nimble, reinvented Bassett of the future.”
About Bassett Furniture Industries, Inc.Bassett
Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer
and marketer of high quality home furnishings. With 100 company-
and licensee-owned stores at the time of this release, Bassett has
leveraged its strong brand name in furniture into a network of
corporate and licensed stores that focus on providing consumers
with a friendly environment for buying furniture and accessories.
Bassett’s retail strategy includes stylish, custom-built furniture
that is ready for delivery in the home within 30 days. The stores
also feature the latest on-trend furniture styles, free in-home
design visits, and coordinated decorating accessories. Bassett also
has a traditional wholesale business with more than 700 accounts on
the open market, across the United States and internationally and a
logistics business specializing in home furnishings. For more
information, visit the Company’s website at bassettfurniture.com.
(BSET-E)
Certain of the statements in this
release, particularly those preceded by, followed by or including
the words “believes,” “plans,” “expects,” “anticipates,” “intends,”
“should,” “estimates,” or similar expressions, or those relating to
or anticipating financial results or changes in operations for
periods beyond the date of this release, constitute “forward
looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended. For those statements,
Bassett claims the protection of the safe harbor for forward
looking statements contained in the Private Securities Litigation
Reform Act of 1995. In many cases, Bassett cannot predict
what factors would cause actual results to differ materially from
those indicated in the forward looking statements.
Expectations included in the forward-looking statements are based
on preliminary information as well as certain assumptions which
management believes to be reasonable at this time. The
following important factors affect Bassett and could cause actual
results to differ materially from those indicated in the forward
looking statements: the effects of national and global
economic or other conditions (including, without limitation, the
effects on revenue, supply and demand resulting from the duration
and extent of the COVID-19 pandemic) and future events on the
retail demand for home furnishings and the ability of Bassett’s
customers and consumers to obtain credit; the success of marketing,
logistics, retail and other initiatives; and the economic,
competitive, governmental and other factors identified in Bassett’s
filings with the Securities and Exchange Commission. Any
forward-looking statement that Bassett makes speaks only as of the
date of such statement, and Bassett undertakes no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
J. Michael Daniel
Senior Vice President and Chief
Financial Officer (276) 629-6614 –
Investors Peter D. MorrisonVice
President of Communications (276) 629-6450 –
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