Bassett Furniture Industries Suffers Major Setback Due to Ransomware Attack

Bassett Furniture Industries, a century-old powerhouse in the US furniture industry, has been brought to its knees by a devastating ransomware attack. The company, which promarily operates across 90 stores in the US, was forced to close its manufacturing facilities after hackers encrypted critical data on July 10th.

With roots dating back to 1902, Bassett Furniture Industries has long been a staple in American homes, known for its high-quality furniture and timeless designs. However, the ransomware attack has dealt a severe blow to the company, causing a reported 17% decrease in revenue for the second quarter of 2024 compared to the previous year.

In a regulatory filing, Bassett Furniture Industries revealed that unauthorized access was discovered, prompting the shutdown of certain information technology systems. The hackers were able to disrupt the company’s operations by encrypting vital data files, triggering the activation of the company’s incident response plan.

“As a result of the company’s containment measures, which included shutting down some systems, the company has not been, and as of the date of this report is not operating its manufacturing facilities,” Bassett Furniture said in an 8-K filing with the Securities and Exchange Commission.

While the retail stores and online platform remain open for business, the inability to produce furniture has severely impacted operations. Despite efforts to restore systems and implement workarounds, the full extent of the damage caused by personal impact remains unclear.

This attack serves as a stark reminder of the increasing vulnerability of companies, both large and small, to cyber threats. It underscores the challenges that businesses face in balancing cybersecurity investments with the potential financial repercussions of disclosing such incidents. Just this month, notable companies like UnitedHealth and a car dealership reported substantial financial impacts due to cybersecurity breaches.

As Bassett Furniture Industries works to recover from this catastrophic attack, the industry as a whole is left to ponder the ongoing battle against cyber threats and the importance of robust security measures in safeguarding vital business operations.