Activist investor DGB Investments has secured three board seats at Ethan Allen Interiors Inc., achieving majority control of the furniture maker and retailer. Current Chairman Farooq Kathwari and independent director David Sable were defeated in the board election. Three DGB-nominated candidates won seats: Doug Bergeron, former Wayfair executive Steve Oblak, and former eBay strategy chief Kristine Miller.
Current board members Tara Stacom and Maria Eugenia Casar were re-elected. In an interview, Bergeron called securing a board majority "monumental," stating his team will engage with employees, suppliers, and customers to ensure an orderly transition. He has offered Kathwari the role of board chairman emeritus.
Bergeron emphasized his long-term commitment to his stake. The new board is scheduled to convene at Ethan Allen's Danbury, Connecticut headquarters following vote certification by an independent auditor. This outcome caps a months-long proxy fight that began in August when Bergeron disclosed his stake and pushed for board changes, arguing poor leadership had hampered performance.
DGB had previously planned to appoint Stefanie Tsen Ward as interim CEO, but she also failed to win a board seat. Fifth nominee Anna Brockway, co-founder of Chairish, likewise lost her bid. Ethan Allen shares rose approximately 5% on Wednesday, closing at $21.23 in New York trading.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing