Ethan Allen owns five of the stores and leases the others. Management expects to sell the owned properties within the next 12 to 15 months and result in pretax gains of $4 million to $5 million.

The 12 stores that are closing represent about $34 million in annual sales, about 50% of which management says will be made up for by the Manhattan flagship store. Existing store locations are expected to make up for most of the other half.

The company is forecasting a $9.5 million to $10.5 million charge as a result of the closings for its current fiscal year, which ends June 30. Starting the next fiscal year, management expects operating profits to improve by $3 million to $4 million as a result of the measure.