Ethan Allen Interiors has initiated a search for a new chief executive officer to succeed Farooq Kathwari, whose contract is set to expire on June 30, 2027. The furniture maker announced Monday that it has engaged an executive search firm to assist in the process and that its board is committed to naming a successor by the contract’s end date.

The company’s move comes amid an ongoing proxy contest led by investor Doug Bergeron, who holds more than a 5% stake in the Danbury, Connecticut-based company. Bergeron recently disclosed he has also begun searching for a potential replacement CEO as part of his effort to gain control over Ethan Allen’s board.

Kathwari has served as CEO of Ethan Allen Interiors for an extended period, guiding the company through various market conditions. Bergeron’s proxy campaign reflects broader investor dissatisfaction and a push for changes in leadership and strategic direction. The board’s announcement of a formal CEO search signals an effort to manage leadership transition proactively amidst the contested governance environment.

Ethan Allen’s board has not disclosed any specific candidates or a timeline beyond the contract’s expiration date for the CEO appointment. The company noted that it intends to complete the leadership transition in an orderly manner, consistent with its governance and strategic planning objectives.

As the proxy battle unfolds, shareholders will likely see heightened debate over the company’s future management and operational priorities. The outcome of the search for a new CEO may play a significant role in determining the direction of Ethan Allen Interiors in the coming years.