Bassett Buys Stake in Eight Retail Stores

Bassett, VA, June 3–Bassett Furniture said it is acquiring a controlling interest in eight Bassett Furniture Direct stores in the greater Dallas area.

The company expects to log a pretax charge of $2 million to $2.6 million in the second quarter from the transaction, which raises the number of corporate-owned Bassett Furniture Direct stores to 22.

Bassett said it will consolidate the results of those stores in the third quarter, and forecast a second-half loss of 3 cents to 4 cents per share from those operations. The stores are projected to break even in 2006, Bassett said.

Bassett added that sales are expected to grow about 3.5 percent to $83.1 million for the second quarter ended May 28. Results are scheduled to be released on June 28, the company said.