NEW DELHI: Bassett Furniture Industries, a century-old cornerstone of the US furniture industry, has been brought to its knees by a ransomware attack. The company was forced to shutter its manufacturing facilities after hackers encrypted critical data on July 10. With nearly 90 stores across the US, Bassett Furniture is one of the largest manufacturers and marketers of furniture dating back to 1902.

On the day of the ransomware attack, the company reported a 17% decrease in revenue for the second quarter of 2024 compared to last year.

Bassett Furniture Industries said that it shut down some of its information technology systems after it discovered unauthorized access. The hacker “disrupted the Company’s business operations by encrypting some data files” and forced the company to activate its incident response plan,” it said in a regulatory filing.

“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 Bassett Furniture’s retail stores and online platform remain open for business, the inability to produce furniture has severely hampered operations. Despite efforts to restore systems and implement workarounds, the full extent of the damage remains unclear.

This attack underscores the growing vulnerability of even established companies to cyber threats. The incident highlights the challenges businesses face in balancing cybersecurity investments with the potential financial impact of disclosing incidents. Earlier this month, insurance company UnitedHealth and a car dealership company reported significant financial impacts caused by cybersecurity incidents.

Agencies

Agencies