Ethan Allen Interiors Inc. plans to convert its wood furniture manufacturing in the United States entirely to a made-to-order model, an unprecedented move in its corporate history driven by how it sees customer whims evolving.
The Danbury-based company did not immediately state the costs and revenue expectations of the conversion, which it expects to take 12 months. In its fiscal third quarter ending March 31, Ethan Allen lost $49 million as sales dropped more than 40 percent to $140 million.
Ethan Allen will now manufacture and upholster furniture based on custom orders, rather than relying on large production runs. The company plans to start the conversion with its dining-room furniture factories.
“Our custom capability is one of our strongest assets and a strong point of differentiation,” said CEO Farooq Kathwari, in a prepared statement. “During the last few years, we have been making affordable custom upholstery in our U.S. workrooms and shipping more than 80 percent of this custom product within thirty days.”
