Ethan Allen’s Manufacturing Plant in Orleans, Vermont, Resumes Operations and Continues to Make Progress Following July Flooding

DANBURY, CT, Sept. 19, 2023 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD) today issued the following statement regarding an update on the flooding that has recently impacted its Orleans, Vermont, manufacturing facility:

In July 2023, Ethan Allen’s wood furniture manufacturing operations located in Orleans, Vermont, sustained damage from heavy flooding of the nearby Barton River. In addition to losses related to wood furniture inventory parts and state-of-the-art manufacturing equipment, the flooding also resulted in a temporary work stoppage for many Vermont associates and a disruption and delay of shipments for approximately seven weeks. 

Ethan Allen has deep roots in Vermont, first established in 1936 when the Company’s founders purchased a sawmill in Beecher Falls. The Orleans workshop employs approximately 250 dedicated local associates and serves as an important economic engine, not only in the Orleans and Barton areas, but also for businesses and workers throughout the Northeast Kingdom. Ethan Allen’s sawmill and wood machining operation, located about an hour away in Beecher Falls, provides wood parts to Orleans.

“We are proud of our roots in the Northeast Kingdom,” said Ethan Allen’s Chairman, President and CEO, Farooq Kathwari. “We are fortunate to have maintained our manufacturing facilities in North America, which enables us to be in a better position to serve our clients. I recently had the opportunity to visit both Orleans and Beecher Falls and meet with our dedicated associates. While the July flooding has caused substantial damage to our Vermont wood furniture manufacturing plant, we are pleased to see our business resume operations and actively work down existing backlog.”

Ethan Allen is currently working through insurance to recover a portion of incurred losses, which will be included in the Company’s fiscal 2024 first quarter financial results. Losses incurred from the disposal of damaged inventory, inoperable machinery equipment from water damage, facility cleanup, and restoration, are currently estimated to be approximately $2.5 million, net of insurance recoveries and grant proceeds. In addition, the flooding has resulted in a delay in the production of custom orders, which is expected to reduce the Company’s consolidated net sales by approximately $15 million during the first quarter of fiscal 2024.