Bassett buys 8 Dallas-area BFD stores
By Furniture Today Staff -- Furniture Today, June 20, 2005
Bassett, Va. — Bassett Furniture Inds. has acquired controlling interest in eight Bassett Furniture Direct stores in the greater Dallas area.
The transaction will result in a pretax charge of $2 million to $2.6 million in Bassett's second fiscal quarter, which ended May 28.
It boosts the number of company-owned stores to 22. There are 120 BFD stores nationwide.
Bassett officials said the Dallas stores currently are not profitable, but should operate on a break-even basis in fiscal 2006. The company is forecasting a net loss of 3 cents to 4 cents per share for the stores during the second half of fiscal 2005.
"We will provide both the organizational and financial strength needed to improve the performance of these stores," said Rob Spilman, Bassett's president and CEO. "This operation will provide our corporate store program with greater scale, allowing us to drive the consistency and uniformity we believe are vital to our overall BFD program."
Bassett is scheduled to release its second quarter results June 28. The company is projecting sales will be about 3.5% ahead of the second quarter of 2004.
