About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated (Bassett) operates as a retailer, manufacturer, and marketer of branded home furnishings. The company’s products are sold primarily through a network of company-owned and licensee-owned branded stores under the Bassett Home Furnishings (BHF) name, with additional distribution through other wholesale channels, including multi-line furniture stores, many of which feature Bassett galleries or design centers. The company also sells its products through its newly redesigned website at www.bassettfurniture.com. With BHF stores, the company has leveraged its strong brand name in furniture into a network of company-owned and licensed stores that focus on providing consumers with a friendly and casual environment for buying furniture and accessories. The company’s store program is designed to provide a single source home furnishings retail store that provides a unique combination of stylish, quality furniture and accessories with a high level of customer service. In order for the Bassett brand to reach markets that cannot be effectively served by the company’s retail store network, it also distributes its products through other wholesale channels, including multi-line furniture stores, many of which feature Bassett galleries or design centers. The company uses a network of over 30 independent sales representatives who have stated geographical territories. The BHF stores feature custom order furniture, free in-home or virtual design visits (home makeovers) and coordinated decorating accessories. The company considers its website to be the front door to its brand experience where customers can research its furniture and accessory offerings and subsequently buy online or engage with an in-store design consultant. Digital outreach strategies have become the primary vehicle for brand advertising and customer acquisition. As a result, the company has been engaged in a multi-year cross-functional digital transformation initiative with the first phase consisting of the examination and improvement of its underlying data management processes. During 2022, the company implemented a comprehensive Product Information Management system, which allows it to enhance and standardize its product development and data management and governance processes. This results in more consistent data that the company’s merchandizing and sales teams can use in analyzing various product and sales trends in order to make better informed decisions. The company also introduced a new web platform in August of 2023 that leverages world class features, including enhanced customer research capabilities and streamlined navigation. The company plans to implement several enhancements to the site in 2024 that will improve the overall customer experience and brand presentation. In 2022, the company acquired Noa Home Inc. (Noa Home). A mid-priced e-commerce furniture retailer headquartered in Montreal, Canada, Noa Home has operations in Canada, Australia, Singapore, and the United Kingdom. With a lean staffing model, the Noa Home team has built an operational blueprint that has the potential for significant growth. The company is in the process of expanding Noa Home’s product assortment and categories offered on the Canadian website. In August of 2023, the company introduced the Noa Home brand in the United States. In 2018, the company added outdoor furniture to its offerings with the acquisition of the Lane Venture brand. The company’s strategy is to distribute these products outside of its BHF store network through independent sales representatives each of which have a stated geographic territory. Using Lane Venture as a platform, the company developed the Bassett Outdoor brand that is only marketed through the BHF store network. This allows Bassett branded products to move from inside the home to outside the home to capitalize on the growing trend of outdoor living. In the second quarter of 2023, the company debuted the Bassett Outdoor contract line at the HD Expo Show in Las Vegas targeting the hospitality segment. In addition to the furniture that it manufactures domestically, the company sources most of its formal bedroom and dining room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam and China. Segments The company operates through Wholesale and Retail –Company-Owned Stores segments. Wholesale The Wholesale segment is involved principally in the design, manufacturing, and sourcing of furniture products that are distributed through the company’s BHF store network (both company-owned and licensee-owned stores) and various independent retailers. The company’s domestic product includes certain products that contain components, which were also sourced. The company uses lumber, fabric, leather, foam, and other materials in the production of wood and upholstered furniture. These components are purchased from a variety of domestic and international suppliers and are widely available. Retail The Retail—Company-Owned Stores segment consists of BHF stores that provide consumers with a friendly and casual environment for buying furniture and accessories. As a whole, the company’s store network which includes licensee-owned stores, ranks in the top 30 in retail furniture sales in the United States. Trademarks The company’s trademarks, including ‘Bassett’ and the names of some of its marketing divisions, products, and collections, are significant to the conduct of its business. The company also owns copyrights that are important in the conduct of its business. Discontinued Operations In February 2022, the company sold substantially all of the assets of its wholly-owned subsidiary, Zenith Freight Lines, LLC (Zenith) to J.B. Hunt Transport Services, Inc. (J.B. Hunt). The operations of the company’s Logistical Services segment, which consisted entirely of the operations of Zenith, are presented as discontinued operations. History Bassett Furniture Industries, Incorporated was founded in 1902. The company was incorporated under the laws of Virginia in 1930.