Bassett Suspends Special Dividend

October 16, 2008  by in UnCategorized   

By Home Furnishings Business in Case Goods on October 2008 Bassett Furniture Industries announced Thursday it will pay a quarterly dividend of 10 cents per share on Dec. 1, but, citing economic uncertainties, the company has suspended a decision on a 50 cent per share second special dividend it previously said it planned to make during 2008.

In a news release, the company that operates a network of 115 Bassett Furniture Direct stores said it has returned over $22 million to its shareholders during 2008 in the form of a 75-cent dividend paid in August and its regular quarterly 85-cent dividend. The source of this return of capital has been the liquidation of a significant portion of the company’s investment portfolio. Thursday’s announcement by the Bassett, Va.-based company said it is suspending action on the 50-cent special dividend due to unprecedented turmoil in the financial markets, additional erosion of home furnishings sales and general uncertainty about the possibility of conditions worsening.

“Despite these difficult conditions, we remain committed to our core retail strategies, are encouraged by the early results of our new prototype stores, and are confident we can gain market share through this period,” said Robert Spilman, Jr., president and CEO. “The actions taken by our board reflect a desire to maintain the strength of our balance sheet, to ensure we stay on solid terms with our lender, and to do what is in the best long-term interests of our shareholders.”