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- calendar_today November 8, 2026
Board Overhaul at Ethan Allen Guides New Direction
Ethan Allen, a well-known furniture and interior design company founded in Vermont in 1932, underwent significant leadership changes this week after three out of its five board members were ousted in a shareholder vote. The shift marks the culmination of an aggressive board takeover led by Utah-based investor Doug Bergeron, former Verifone CEO and founder of DGB Investment.
Meet Doug Bergeron: The Investor Behind the Change
Doug Bergeron, who controls roughly 5% of Ethan Allen’s shares, is no stranger to proxy contests. He previously orchestrated a successful board takeover at the retail tech firm Canteloupe in 2020. Bergeron stated that, despite his initial exclusion from board participation, he was determined to effect significant change at Ethan Allen, believing the company has lagged behind competitors in terms of growth.
Bergeron emphasized his commitment to the company’s heritage and future, saying, "The existing management team loves the company, but they don’t know how to love it in a modern way." He intends to modernize Ethan Allen's approach—particularly in sales and marketing—to help the business regain its competitive edge.
Leadership Departure Ushers in New Era
Longtime CEO and board president Farooq Kathwari was among the board members voted out. The company had previously announced a CEO succession plan in September and declined to comment on the leadership changes beyond a short statement confirming the preliminary results of the vote. An earnings call set for November 9 was canceled, but Ethan Allen still plans to release its quarterly financial report on that date.
Focus on Local Manufacturing Amid Global Challenges
Ethan Allen’s U.S.-based manufacturing operations, including facilities in Vermont’s Orleans and Beecher Falls, remain central to Bergeron’s strategy. He noted that domestic facilities could become increasingly valuable as tariffs complicate international sourcing. More than 300 Vermonters remain employed at the company’s Vermont locations, with Bergeron suggesting the potential for workforce growth as new strategies are implemented.
"I’m not a private equity firm. We’re completely committed to the state of Vermont," Bergeron said. He is set to visit the company’s Northeast Kingdom facilities next week to meet employees and reinforce his confidence in local operations, emphasizing his expectation for increased capacity and growth.
Community Reaction: Hope and Cautious Optimism
Tayt Brooks, Vermont's Commerce and Community Development Secretary, described Bergeron’s plans as encouraging and expressed hope for a productive discussion with the new leadership. Local business leaders offered cautious optimism. Cathy Davis, President and CEO of the Lake Champlain Chamber of Commerce, acknowledged that change can be unsettling for employees but suggested that a renewed focus on digital retail and sales modernization could benefit Vermont’s manufacturing workers.
Loralee Tester, head of the Northeast Kingdom Chamber of Commerce, underscored the importance of Ethan Allen as a major employer in a rural region. She noted that although the company now employs fewer Vermonters than its peak of 1,200 in the early 2000s, its impact remains significant. Previous rounds of layoffs and offshoring were linked to labor shortages and rising costs, challenges common in the industry.
Looking Forward: Growth, Sales Modernization, and Digital Strategy
Bergeron has signaled a commitment to both strengthening Ethan Allen’s local manufacturing base and modernizing its customer-facing business, potentially through expanded digital retail efforts. As Bergeron prepares to visit Vermont facilities and meet with local officials and workers, the company’s future course will become clearer. Meanwhile, both community leaders and employees remain attentive to the effects of the leadership change and the new strategic direction for Ethan Allen.
Source: vtdigger.org.
