Bassett Posts 2Q Loss

Bassett, VA, July 6, 2007--Bassett Furniture swung to a loss in the fiscal second quarter, hurt by higher production costs and slower sales caused by a worsening housing slump.

Bassett reported a loss of $2.4 million, or 20 cents per share, in the quarter ended May 26. A year ago, the company earned $2.8 million, or 24 cents per share.

The latest quarter included charges related to the closings of a plant and three retail stores. Bassett previously announced it would close its flagship Bassett, Va., plant and import more furniture from countries with lower production costs.

Sales fell 14 percent to $75.4 million from $87.7 million last year. The company blamed the decline on a drop in retail furniture sales amid a persistently sluggish housing market.

The company's retail unit had a slightly wider operating loss of $2.7 million, hurt by costs to open two stores in Boston.