Glass Lewis backs activist's bid to replace entire Ethan Allen board

Proxy advisory firm Glass Lewis endorsed Doug Bergeron's bid to replace all five directors at Ethan Allen, including the company's 82-year-old CEO, Farooq Kathwari. Bergeron and his investment firm, DGB Investments, control 5.2% of the $515 million company, renowned for colonial wood revival furniture and U.S. diplomatic home decor.

Glass Lewis joined Egan-Jones Proxy Services in recommending investors cast ballots for all of Bergeron's director candidates. The activist investor contends that his slate of executives with backgrounds in home furnishings, turnarounds, luxury retail, and digital strategy can restore profitable growth and triple shareholder value within three years.

Ethan Allen's stock has dropped over a quarter of its value in the past year, closing Friday at $20.45. The company's incumbent management and board have overseen continuous structural decline and a risky capital program. Ethan Allen aims to appoint a successor to Kathwari by June 30, 2027, though Kathwari will stay on as CEO during the search and until the 2027 annual meeting. Ethan Allen has not commented on the Glass Lewis recommendation.