The dividend is payable Dec. 20 to shareholders of record as of Dec. 10.
"We are pleased to announce this special dividend at year end," said Robert H. Spilman Jr., president and CEO. "2013 has been a year of improved performance for Bassett as sales and operating profit have increased significantly. In support of these efforts, the company has invested $14 million in new store openings, manufacturing infrastructure, a new retail operating system, and upgrades to its information technology platform. A similar level of investment is planned in fiscal 2014."
Spilman said the company's business has steadily improved and he has renewed confidence in the home furnishings environment.
"The Bassett Home Furnishings stores that have opened over the past two years have produced encouraging results, and we will continue to open new locations at a manageable pace in 2014 and beyond. We also plan to invest in our two domestic manufacturing facilities as demand for those products has risen. Our balance sheet is fundamental to this expansion and we will primarily utilize it for this purpose. In concert, management and our board of directors will continue to review the company's capital allocation and, when deemed appropriate, will consider a return of capital to shareholders. It is in this context that today's special dividend has been declared."