Ethan Allen Interiors has begun the search for its next CEO as the company prepares for its first leadership transition in nearly four decades.

The manufacturer and retailer of home furnishings has engaged an executive search firm to identify and evaluate both internal and external candidates.  

The board expects to announce the new CEO no later than June 30, the date on current chief Farooq Kathwari’s contract concludes. Kathwari has agreed to remain as a non-executive member of the board until the company’s annual meeting, expected to take place late next year.

“The independent directors are conducting a thorough process to identify a leader with demonstrated experience who can build on and accelerate the company’s ongoing digital transformation, omnichannel retail strategies, and supply chain efficiency to best guide Ethan Allen’s next chapter,” said David Sable, lead independent director.

“This process provides an important period of leadership, continuity and stability. It is also allowing the board to conduct a thoughtful, deliberate, and rigorous succession process on a timeline driven by the long-term needs of the company.”  

Kathwari has led the company as CEO since 1988. He played a major role in taking the company public in 1993.

Kathwari said he fully supports the board-led CEO succession process. 

“As Ethan Allen’s largest shareholder, I remain deeply invested in the company’s long-term success and committed to helping ensure a smooth and seamless leadership transition. I will remain focused on executing Ethan Allen’s strategic priorities while doing everything I can to support a successful transition,” he added.