BASSETT, Va.–Bassett Furniture Industries posted a net loss of $37.8 million in the fourth quarter, as compared to a net loss of $4 million in the final quarter of the prior year.
The increased loss occurred on a drop of 18.9 percent in fourth quarter sales, which totaled $61.7 million. The economy was the prime culprit for the furniture manufacturer and retailer. Robert H. Spilman Jr., president and chief executive officer, said Bassett’s sales fell because of the “extremely weak economy and its effect on the furniture industry.” The quarterly loss also climbed because of bad-debt expenses related to the closing of stores, which offset an improvement in Bassett’s gross margin and a small decrease in selling, general and administrative expenses.
For the full 2008 fiscal year, Bassett reported a net loss of $40.4 million, compared to a net loss in fiscal 2007 of $9.9 million. Sales for the fiscal year were $288.3 million, down 2.4 percent from the previous year.