Bassett Furniture, one of the largest manufacturers of furniture in the United States, has been forced to halt its production capacities following an attack by extortionists last week. The company reported unauthorized access to its information systems on July 10, leading to the encryption of data by the attackers, disrupting Bassett Furniture’s operations. This was disclosed in a regulatory statement issued by the company on Monday.
In response to the cyber incident, the company activated its response plan, resulting in the disconnection of certain systems. Currently, the production capacities of Bassett Furniture are not operational, although the company’s retail stores and online platform remain open for orders, albeit with difficulties in execution. Management is actively working on restoring the affected systems and implementing measures to mitigate the impact of the attack.
Unlike other companies that have faced cyber attacks and reported to the Securities and Exchange Commission (SEC), Bassett Furniture has acknowledged that the incident has had and may continue to have a significant effect on its operational activities until the restoration work is completed. The financial repercussions of the attack remain uncertain, and no extortionist group has claimed responsibility for the breach.
Bassett Furniture, known for its approximately 90 stores across the US, experienced a 17% decrease in revenue for the second quarter of 2024 compared to the previous year on the day of the attack. This incident coincided with a rise in cyber attack reports to the SEC, as new regulations mandating prompt disclosure of financially impactful cyber incidents came into effect last year. The ambiguity surrounding what constitutes “significant cyber incidents” has sparked debates among companies and lawmakers, given the prevalent nature of cyber threats in today’s digital landscape.
Since the enforcement of these regulations, many companies have downplayed the financial consequences of cyber attacks in their reports, only to later reveal substantial losses due to restoration costs or business interruptions. For Bassett Furniture, this incident serves as a harsh reminder of the critical importance of cybersecurity in the modern business environment, alongside product quality and customer focus.