----

----

----

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| Virginia                                                       | 54-0251350                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS employer identification no.) |

| Large accelerated Filer  ̈                                             | Accelerated filer x              |   |
|----------------------------------------------------------------------------|----------------------------------|--------|
| Non-accelerated Filer  ̈ (Do not check if a smaller reporting company) | Smaller reporting company  ̈ |   |

| Common stock, no par value | 10,774,743         |
|----------------------------|--------------------|
| (Class of common stock)    | (Number of shares) |

----

Table of Contents

|                                     |                                                                                  |   |
|------------------------------------------|---------------------------------------------------------------------------------------|--------|
| PART I   Financial Information |                                                                                  |
|                                     |                                                                                  |   |
| Item 1.                                  | Financial Statements                                                                  | 3      |
| Item 2.                                  | Management's Discussion and Analysis of Financial Condition and Results of Operations | 12     |
| Item 3.                                  | Quantitative and Qualitative Disclosures about Market Risk                            | 19     |
| Item 4                                   | Controls and Procedures                                                               | 20     |
|                                     |                                                                                  |   |
| PART II  Other Information          |                                                                                  |
|                                     |                                                                                  |   |
| Item 6.                                  | Exhibits                                                                              | 21     |
| Signatures                               | 22                                                                                    |
|                                     |

----

Table of Contents

Item 1.                        Financial Statements

|                                                                                                   |   |   | May 2,                                                                            |   |   |   | January 31,                                                     |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|--------|-----------------------------------------------------------------|--------|
|                                                                                                   |   |   | 2010                                                                              |   |   |   | 2010                                                            |   |
|                                                                                                   |   |   |                                                                              |   |   |   |                                                            |   |
| Assets                                                                                                 |   |   |                                                                              |   |   |   |                                                            |   |
| Current Assets                                                                                         |   |   |                                                                              |   |   |   |                                                            |   |
| Cash and cash equivalents                                                                              |   | $      | 38,747                                                                            |   |   | $      |    37,995                                        |   |
| Accounts receivable, less allowance for doubtful accounts                                              |   |   |                                                                              |   |   |   |                                                            |
|  of $1,559 and $1,938 on each date                                                                |   |   |         24,388                            |   |   |   |       25,894                      |   |
| Inventories                                                                                            |   |   |         38,541                            |   |   |   |       36,176                      |   |
| Prepaid expenses and other current assets                                                              |   |   |           4,426                 |   |   |   |         3,468           |   |
|      Total current assets                                                     |   |   |       106,102                                       |   |   |   |     103,533                                 |   |
| Property, plant, and equipment, net                                                                    |   |   |         22,198                            |   |   |   |       22,747                      |   |
| Intangible assets                                                                                      |   |   |           3,468                 |   |   |   |         3,468           |   |
| Cash surrender value of life insurance policies                                                        |   |   |         15,315                            |   |   |   |       14,810                      |   |
| Other assets                                                                                           |   |   |           4,593                 |   |   |   |         4,541           |   |
|            Total assets                         |   | $      | 151,676                                                                           |   |   | $      |   149,099                                                  |   |
|                                                                                                   |   |   |                                                                              |   |   |   |                                                            |   |
| Liabilities and Shareholders' Equity                                                                   |   |   |                                                                              |   |   |   |                                                            |   |
| Current Liabilities                                                                                    |   |   |                                                                              |   |   |   |                                                            |   |
|     Trade acccounts payable                                                        |   | $      | 11,781                                                                            |   |   | $      |    10,425                                        |   |
|     Accrued salaries, wages and benefits                                           |   |   |           2,565                 |   |   |   |         2,184           |   |
|     Other accrued expenses                                                         |   |   |           2,588                 |   |   |   |         1,953           |   |
|     Accrued dividends                                                              |   |   |           1,077                 |   |   |   |         1,077           |   |
|         Total current liabilities                              |   |   |         18,011                            |   |   |   |       15,639                      |   |
| Deferred compensation                                                                                  |   |   |           6,099                 |   |   |   |         5,868           |   |
|             Total liabilities              |   |   |         24,110                            |   |   |   |       21,507                      |   |
|                                                                                                   |   |   |                                                                              |   |   |   |                                                            |   |
| Shareholders' equity                                                                                   |   |   |                                                                              |   |   |   |                                                            |   |
|     Common stock, no par value, 20,000 shares authorized,                          |   |   |                                                                              |   |   |   |                                                            |   |
|     10,775 shares issued and oustanding on each date                               |   |   |         17,091                            |   |   |   |       17,076                      |   |
| Retained earnings                                                                                      |   |   |       110,069                                       |   |   |   |     110,073                                 |   |
| Accumulated other comprehensive income                                                                 |   |   |              406 |   |   |   |           443 |   |
|       Total shareholders' equity                                         |   |   |       127,566                                       |   |   |   |     127,592                                 |   |
|           Total liabilities and shareholders' equity |   | $      | 151,676                                                                           |   |   | $      |  149,099                                                   |   |
|                                                                                                   |   |   |                                                                              |   |   |   |                                                            |   |

----

Table of Contents

|                                                                    |   | Thirteen Weeks Ended |   |
|-------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                    |   | May 2,               |   |   | May 3, |   |
|                                                                    |   | 2010                 |   |   | 2009 |   |
|                                                                    |   |                 |   |   |   |   |
| Net Sales                                                               |   | $                    | 51,353 |   |   | $ | 52,063 |   |
|                                                                    |   |                 |   |   |   |   |   |   |
| Cost of Sales                                                           |   |                 | 39,084 |   |   |   | 40,836 |   |
| Casualty loss                                                           |   |                 | 2,025  |   |   |   | - |   |
| Insurance recovery                                                      |   |                 | (1,525 | ) |   |   | - |   |
|    Total Cost of Sales                                   |   |                 | 39,584 |   |   |   | 40,836 |   |
|                                                                    |   |                 |   |   |   |   |   |   |
|       Gross Profit                        |   |                 | 11,769 |   |   |   | 11,227 |   |
|                                                                    |   |                 |   |   |   |   |   |   |
| Selling and administrative expenses                                     |   |                 | 10,063 |   |   |   | 11,181 |   |
| Asset impairment charge                                                 |   |                 | -      |   |   |   | 673 |   |
|                                                                    |   |                 |   |   |   |   |   |   |
|         Operating income (loss) |   |                 | 1,706  |   |   |   | (627 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
| Other (expense) income, net                                             |   |                 | 12     |   |   |   | (3 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
|       Income (loss) before income taxes   |   |                 | 1,718  |   |   |   | (630 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
| Income tax expense (benefit)                                            |   |                 | 644    |   |   |   | (174 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
|        Net income (loss)             |   | $                    | 1,074  |   |   | $ | (456 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
| Earnings (loss) per share                                               |   |                 |   |   |   |   |   |   |
|        Basic                         |   | $                    | 0.10   |   |   | $ | (0.04 | ) |
|        Diluted                       |   | $                    | 0.10   |   |   | $ | (0.04 | ) |
|                                                                    |   |                 |   |   |   |   |   |   |
| Weighted average shares outstanding:                                    |   |                 |   |   |   |   |   |   |
|        Basic                         |   |                 | 10,757 |   |   |   | 10,752 |   |
|        Diluted                       |   |                 | 10,767 |   |   |   | 10,757 |   |
|                                                                    |   |                 |   |   |   |   |   |   |
| Cash dividends declared per share                                       |   | $                    | 0.10   |   |   | $ | 0.10 |   |
|                                                                    |   |                 |   |   |   |   |   |   |

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Table of Contents

|                                                                                                                   |   | Thirteen Weeks Ended |    |
|------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                   |   | May 2,               |    |   | May 3, |   |
|                                                                                                                   |   | 2010                 |    |   | 2009 |   |
| Cash flows from operating activities                                                                                   |   |                 |    |   |   |   |
|    Cash received from customers                                                                         |   | $                    | 52,427  |   |   | $ | 56,838 |   |
|    Cash paid to suppliers and employees                                                                 |   |                 | (50,378 | ) |   |   | (39,872 | ) |
|    Insurance procceds received on casualty loss                                                         |   |                 | 500     |   |   |   | - |   |
|    Income taxes paid, net                                                                               |   |                 | (227    | ) |   |   | (156 | ) |
|    Interest (paid), net                                                                                 |   |                 | (45     | ) |   |   | (128 | ) |
|       Net cash provided by operating activities                                          |   | $                    | 2,277   |   |   | $ | 16,682 |   |
|                                                                                                                   |   |                 |    |   |   |   |   |   |
| Cash flows from investing activities                                                                                   |   |                 |    |   |   |   |   |   |
|    Purchase of property, plant, and equipment                                                           |   |                 | (198    | ) |   |   | (602 | ) |
|    Proceeds from the sale of property and equipment                                                     |   |                 | 5       |   |   |   | 9 |   |
|    Premiums paid on officers' life insurance                                                            |   |                 | (255    | ) |   |   | (280 | ) |
|    Proceeds received on officers' life insurance                                                        |   |                 | -       |   |   |   | 374 |   |
|       Net cash used in investing activities                                              |   |                 | (448    | ) |   |   | (499 | ) |
|                                                                                                                   |   |                 |    |   |   |   |   |   |
| Cash flows from financing activities                                                                                   |   |                 |    |   |   |   |   |   |
|    Cash dividends paid                                                                                  |   |                 | (1,077  | ) |   |   | (1,077 | ) |
|    Payments on long-term debt                                                                           |   |                 | -       |   |   |   | (705 | ) |
|       Net cash used in financing activities                                              |   |                 | (1,077  | ) |   |   | (1,782 | ) |
|                                                                                                                   |   |                 |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                              |   | $                    | 752     |   |   | $ | 14,401 |   |
| Cash and cash equivalents at the beginning of the period                                                               |   |                 | 37,995  |   |   |   | 11,804 |   |
|    Cash and cash equivalents at the end of the period                                                   |   | $                    | 38,747  |   |   | $ | 26,205 |   |
|                                                                                                                   |   |                 |    |   |   |   |   |   |
| Reconciliation of net income to net cash provided by operating activities:                                             |   |                 |    |   |   |   |   |   |
|    Net income (loss)                                                                                    |   | $                    | 1,074   |   |   | $ | (456 | ) |
|        Depreciation and amortization                                                |   |                 | 748     |   |   |   | 730 |   |
|        Non-cash restricted stock awards and performance grants                      |   |                 | 15      |   |   |   | 20 |   |
|        Asset impairment charges                                                     |   |                 | -       |   |   |   | 673 |   |
|        Provision for doubtful accounts                                              |   |                 | (329    | ) |   |   | 183 |   |
|        Deferred income taxes                                                        |   |                 | (159    | ) |   |   | (141 | ) |
|        Changes in assets and liabilities:                                           |   |                 |    |   |   |   |   |   |
|           Trade accounts receivable                                  |   |                 | 1,835   |   |   |   | 4,521 |   |
|           Inventories                                                |   |                 | (2,365  | ) |   |   | 13,109 |   |
|           Prepaid expenses and other current assets                  |   |                 | (30     | ) |   |   | (83 | ) |
|           Trade accounts payable                                     |   |                 | 279     |   |   |   | (1,780 | ) |
|           Accrued salaries, wages, and benefits                      |   |                 | 381     |   |   |   | 64 |   |
|           Accrued income taxes                                       |   |                 | 576     |   |   |   | - |   |
|           Other accrued expenses                                     |   |                 | 59      |   |   |   | (382 | ) |
|           Deferred compensation                                      |   |                 | 193     |   |   |   | 192 |   |
|           Other long-term liabilities                                |   |                 | -       |   |   |   | 32 |   |
|              Net cash provided by operating activties |   | $                    | 2,277   |   |   | $ | 16,682 |   |
|                                                                                                                   |   |                 |    |   |   |   |   |   |

----

Table of Contents

| 1. | Preparation of Interim Financial Statements |
|----|---------------------------------------------|

| §   | the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| 2. | Inventories |
|----|-------------|

|                                  |   | May 2, |   |   | January 31, |   |
|---------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                  |   | 2010   |   |   | 2010        |   |
|                                  |   |   |   |   |        |   |
| Finished furniture                    |   | $      | 42,060 |   |        | $      | 40,205 |   |
| Furniture in process                  |   |   | 864    |   |        |   | 798 |   |
| Materials and supplies                |   |   | 7,866  |   |        |   | 7,258 |   |
|    Inventories at FIFO |   |   | 50,790 |   |        |   | 48,261 |   |
| Reduction to LIFO basis               |   |   | 12,249 |   |        |   | 12,085 |   |
|    Inventories         |   | $      | 38,541 |   |        | $      | 36,176 |   |
|                                  |   |   |   |   |        |   |   |   |

----

Table of Contents

|                                                 |   | May 2, |   |   | January 31, |   |
|------------------------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                                 |   | 2010   |   |   | 2010        |   |
| Buildings and land improvements                      |   | $      | 23,814 |   |        | $      | 23,708 |   |
| Machinery and equipment                              |   |   | 3,553  |   |        |   | 3,507 |   |
| Furniture and fixtures                               |   |   | 27,608 |   |        |   | 27,494 |   |
| Other                                                |   |   | 4,104  |   |        |   | 4,043 |   |
|    Total depreciable property at cost |   |   | 59,079 |   |        |   | 58,752 |   |
| Less accumulated depreciation                        |   |   | 38,346 |   |        |   | 37,603 |   |
|    Total depreciable property, net    |   |   | 20,733 |   |        |   | 21,149 |   |
| Land                                                 |   |   | 1,357  |   |        |   | 1,357 |   |
| Construction in progress                             |   |   | 108    |   |        |   | 241 |   |
|    Property, plant and equipment, net |   | $      | 22,198 |   |        | $      | 22,747 |   |

|                                              |   | May 2, |   |   | January 31, |   |
|---------------------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                              |   | 2010   |   |   | 2010        |   |
| Non-amortizable Intangible Assets                 |   |   |   |   |        |   |
| Trademarks and trade names - Bradington-Young     |   | $      | 2,676  |   |        | $      | 2,676 |   |
| Trademarks and trade names - Sam Moore            |   |   | 396    |   |        |   | 396 |   |
| Trademarks and trade names - Opus Designs         |   |   | 396    |   |        |   | 396 |   |
|    Total trademarks and tradenames |   |   | 3,468  |   |        |   | 3,468 |   |
|                                              |   |   |   |   |        |   |   |   |

|                                  |   | May 2, |   |   | January 31, |   |
|---------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                  |   | 2010   |   |   | 2010        |   |
|                                  |   |   |   |   |        |   |
| Trade accounts receivable             |   | $      | 16,917 |   |        | $      | 19,400 |   |
| Receivable from factor                |   |   | 9,030  |   |        |   | 8,432 |   |
| Allowance for doubtful accounts       |   |   | (1,559 | )      |        |   | (1,938 | ) |
|    Accounts receivable |   | $      | 24,388 |   |        | $      | 25,894 |   |
|                                  |   |   |   |   |        |   |   |   |

----

Table of Contents

|                                                                                       |   | Thirteen Weeks Ended |   |
|--------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                       |   | May 2,               |   |   | May 3, |   |
|                                                                                       |   | 2010                 |   |   | 2009 |   |
| Net income                                                                                 |   | $                    | 1,074  |   |   | $ | (456 | ) |
| Loss on interest rate swap                                                                 |   |                 | -      |   |   |   | (19 | ) |
| Portion of swap agreement's fair value                                                     |   |                 |   |   |   |   |   |   |
|       reclassified to interest expense                       |   |                 | -      |   |   |   | 62 |   |
| Unrealized gain on interest rate swap                                                      |   |                 | -      |   |   |   | 43 |   |
| Portion of accumulated acturial gain on Supplemental                                       |   |                 |   |   |   |   |   |   |
|       Retirement Income Plan reclassified to deferred        |   |                 |   |   |   |   |   |   |
|          compensation expense                 |   |                 | (59    | ) |   |   | (55 | ) |
| Other comprehensive loss before tax                                                        |   |                 | (59    | ) |   |   | (12 | ) |
| Income tax benefit                                                                         |   |                 | 22     |   |   |   | 4 |   |
|          Other comprehensive loss, net of tax |   |                 | (37    | ) |   |   | (8 | ) |
|       Comprehensive net income (loss)                        |   | $                    | 1,037  |   |   | $ | (464 | ) |
|                                                                                       |   |                 |   |   |   |   |   |   |

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Table of Contents

|                                                                                                                                 |   | Thirteen Weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                                                                 |   | May 2,               |   |   | May 3, |   |
|                                                                                                                                 |   | 2010                 |   |   | 2009 |   |
|                                                                                                                                 |   |                 |   |   |   |   |
| Net income                                                                                                                           |   | $                    | 1,074  |   |   | $ | (456 | ) |
|    Less: Unvested participating restricted stock dividends                                                            |   |                 | 2      |   |   |   | - |   |
|               Net earnings allocated to unvested participating |   |                 |   |   |   |   |   |   |
|               restricted stock                                 |   |                 | 1      |   |   |   | - |   |
| Earnings available for common shareholders                                                                                           |   |                 | 1,071  |   |   |   | (456 | ) |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |
| Weighted average shares outstanding for basic                                                                                        |   |                 |   |   |   |   |   |   |
|        earnings per share                                                                         |   |                 | 10,757 |   |   |   | 10,752 |   |
| Dilutive effect of non-vested restricted stock awards                                                                                |   |                 | 10     |   |   |   | 5 |   |
|    Weighted average shares outstanding for diluted                                                                    |   |                 |   |   |   |   |   |   |
|        earnings per share                                                                         |   |                 | 10,767 |   |   |   | 10,757 |   |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |
| Basic earnings (loss) per share                                                                                                      |   | $                    | 0.10   |   |   | $ | (0.04 | ) |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |
| Diluted earnings (loss) per share                                                                                                    |   | $                    | 0.10   |   |   | $ | (0.04 | ) |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |

----

Table of Contents

|               |   |     |   | Fixed    |   |            |   |              |   |
|--------------------|--------|----------|--------|----------|--------|-----------------|--------|-------------------|--------|
|               |   | Notional |   | Interest |   |            |   |              |   |
| Agreement          |   | Amount   |   | Rate     |   | Expiration Date |   | Fair Value        |   |
|               |   |     |   |     |   |            |   |              |   |
| Interest rate swap |   | $        | 1,560  |     |   | 3.09            | %      | September 1, 2010 |   | $ | (17 | ) |
|               |   |     |   |     |   |            |   |              |   |   |   |   |

| Fair Value Disclosure of Derivative Instruments                                                                                        |   |                   |   |                          |   |        |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|-------------------------------|--------|-------------|
|                                                                                                                                   |   |                   |   |                          |   |        |   |   |
| The following table provides quantitative fair value disclosures regarding our interest rate swap at May 2, 2010 and January 31, 2010: |
|                                                                                                                                   |   |                   |   |                          |   |        |   |   |
|                                                                                                                                   |   |                   |   | Fair Value at Dates Indicated |
|                                                                                                                                   |   |                   |   | Quoted Prices in              |   | Significant |   |   |
|                                                                                                                                   |   | Carrying Value and     |   | Active Markets                |   | Other       |   | Significant |
|                                                                                                                                   |   | Balance Sheet Location |   | for Identical                 |   | Observable  |   | Unobservable |
|                                                                                                                                   |   | (Other Accrued         |   | Instruments                   |   | Inputs      |   | Inputs |
|                                                                                                                                   |   | Expenses)              |   | (Level 1)                     |   | (Level 2)   |   | (Level 3) |
|                                                                                                                                   |   |                   |   |                          |   |        |   |   |
| Interest rate swap at May 2, 2010                                                                                                      |   | $                      | (17    | )                             |   |        | $ | (17 | ) |   |
| Interest rate swap at January 31, 2010                                                                                                 |   |                   | (33    | )                             |   |        |   | (33 | ) |   |
|                                                                                                                                   |   |                   |   |                          |   |        |   |   |   |   |

|                                                   |   | Thirteen Weeks Ended |   |
|--------------------------------------------------------|--------|----------------------|--------|
|                                                   |   | May 2,               |   |   | May 3, |   |
|                                                   |   | 2010                 |   |   | 2009 |   |
| Interest rate swap:                                    |   |                 |   |   |   |   |
| Loss recognized in other comprehensive income          |   | $                    | -      |   |   | $ | (19 | ) |
| Loss reclassified from accumulated other comprehensive |   |                 |   |   |   |   |   |   |
|    income into interest expense, net    |   |                 | -      |   |   |   | 62 |   |
|                                                   |   |                 |   |   |   |   |   |   |

----

Table of Contents

|                                                          |   | Thirteen Weeks Ended |   |
|---------------------------------------------------------------|--------|----------------------|--------|
|                                                          |   | May 2,               |   |   | May 3, |   |
|                                                          |   | 2010                 |   |   | 2009 |   |
| Net periodic benefit cost                                     |   |                 |   |   |   |   |
|    Service cost                                |   | $                    | 146    |   |   | $ | 158 |   |
|    Interest cost                               |   |                 | 85     |   |   |   | 89 |   |
|    Gain                                        |   |                 | (59    | ) |   |   | (54 | ) |
|       Net periodic benefit cost |   | $                    | 172    |   |   | $ | 193 |   |
|                                                          |   |                 |   |   |   |   |   |   |

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Table of Contents

Item 2.                        Management’s Discussion and Analysis of Financial Condition and Results of Operations

| §   | the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| §   | Net sales declined by $710,000, or 1.4%, to $51.4 million during the fiscal year 2011 first quarter compared to net sales of $52.1 million during the fiscal year 2010 first quarter.  This decline reflects the continued year-over-year declines in case goods incoming order rates experienced since the fiscal 2006 third quarter, resulting from the industry-wide slowdown in business at retail and, more recently, delays in obtaining some of our sourced product (as discussed above.) However, the case goods order rate decrease was partially offset by significantly increased upholstery order rates in the current quarter. Additionally, case goods order rates appear to be stabilizing as  decreases in the fiscal 2011 first quarter are significantly lower than the comparable prior year fiscal quarter and are lower than the fiscal year 2010 fourth quarter decrease. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Gross margins for the fiscal 2011 first quarter improved primarily due to |
|--------------------|---------------------------------------------------------------------------|

| o   | lower freight costs as a percentage of sales for wood and metal furniture and |
|---------------|-------------------------------------------------------------------------------|

| o   | slightly increased margins at our upholstery division primarily due to increased upholstery sales. |
|---------------|----------------------------------------------------------------------------------------------------|

| §   | Selling and administrative expenses decreased in both absolute terms and as a percentage of sales compared to the corresponding fiscal year 2010 period, primarily as a result of cost cutting measures implemented during fiscal 2010 and lower selling expenses due to lower commissions. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Operating income for the fiscal year 2011 first quarter was $1.7 million, or 3.3% of net sales, compared to an operating loss of $627,000, or  -1.2% of net sales, in the fiscal year 2010 first quarter. This improvement was principally due to lower fixed operating and domestic upholstery overhead costs as a percent of net sales and the lack of asset impairment activity during the fiscal year 2011 first quarter as compared to the corresponding prior year quarter, partially offset by expenses related to the fire at our distribution center. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | Thirteen Weeks Ended |   |
|----------------------------------------------------|--------|----------------------|--------|
|                                               |   | May 2,               |   |   | May 3, |   |
|                                               |   | 2010                 |   |   | 2009 |   |
| Net sales                                          |   |                 | 100.0  | % |   |   | 100.0 | % |
| Cost of sales                                      |   |                 | 76.1   |   |   |   | 78.4 |   |
| Casualty loss                                      |   |                 | 3.9    |   |   |   | - |   |
| Insurance recovery                                 |   |                 | (2.9   | ) |   |   | - |   |
| Total cost of sales                                |   |                 | 77.1   |   |   |   | 78.4 |   |
| Gross profit                                       |   |                 | 22.9   |   |   |   | 21.6 |   |
| Selling and administrative expenses                |   |                 | 19.6   |   |   |   | 21.5 |   |
| Restructuring and asset impairment (credit) charge |   |                 | -      |   |   |   | 1.3 |   |
| Operating income (loss)                            |   |                 | 3.3    |   |   |   | (1.2 | ) |
| Income before income taxes                         |   |                 | 3.3    |   |   |   | (1.2 | ) |
| Income tax expense                                 |   |                 | 1.2    |   |   |   | (0.3 | ) |
| Net income (loss)                                  |   |                 | 2.1    |   |   |   | (0.9 | ) |

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|                                                |   | Thirteen Weeks Ended |   |
|-----------------------------------------------------|--------|----------------------|--------|
|                                                |   | May 2,               |   |   | May 3, |   |
|                                                |   | 2010                 |   |   | 2009 |   |
|                                                |   |                 |   |   |   |   |
| Operating margin, including asset impairment charge |   |                 | 3.3    | % |   |   | -1.2 | % |
| Intangible asset impairment charge                  |   |                 | 0.0    | % |   |   | 1.3 | % |
| Operating margin, excluding asset impairment charge |   |                 | 3.3    | % |   |   | 0.1 | % |

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|                   |   | Thirteen Weeks Ended |
|------------------------|--------|----------------------|
|                   |   | May 2, 2010          |   |   | May 3, 2009 |   |
|                   |   |                 | % Segment Net Sales |   |   |   | % SegmentNet Sales |   |
| Net Sales              |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Case Goods |   | $                    | 32.6 |   |   |   |   |   | $ | 37.2 |   |   |   |   |
|   Upholstery |   |                 | 18.8 |   |   |   |   |   |   | 14.9 |   |   |   |   |
|   Total      |   |                 | 51.4 |   |   |   |   |   |   | 52.1 |   |   |   |   |
|                   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Margin           |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Case Goods |   |                 | 9.4 |   |   | 28.8 | % |   |   | 9.6 |   |   | 25.9 | % |
|   Upholstery |   |                 | 2.4 |   |   | 12.6 | % |   |   | 1.6 |   |   | 10.8 | % |
|   Total      |   |                 | 11.8 |   |   | 22.9 | % |   |   | 11.2 |   |   | 21.6 | % |
|                   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Margin       |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Case Goods |   |                 | 2.7 |   |   | 8.4 | % |   |   | 1.6 |   |   | 4.4 | % |
|   Upholstery |   |                 | (1.0 | ) |   | -5.5 | % |   |   | (2.3 | ) |   | -15.3 | % |
|   Total      |   |                 | 1.7 |   |   | 3.3 | % |   |   | (0.6 | ) |   | -1.2 | % |

| ●        | deferring, reducing or eliminating certain spending plans; |
|---------------------------------------------------|------------------------------------------------------------|

| ●        | continuing to refine the management of our supply chain, warehousing and distribution operations; and |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------------|

| ●        | adjusting our inventory levels to reflect current business conditions. |
|---------------------------------------------------|------------------------------------------------------------------------|

| ●        | pursuing additional distribution channels and offering an array of new products and designs, which we believe will generate additional sales growth; |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●        | taking actions to streamline our domestic upholstery operations, by improving efficiency and reducing overhead; and, |
|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|

| ●        | continuing to evaluate our operating costs to better match costs to current sales volume levels. |
|---------------------------------------------------|--------------------------------------------------------------------------------------------------|

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| §   | current economic conditions and instability in the financial and credit markets including their potential impact on our (i) sales and operating costs and access to financing, (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their business; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | general economic or business conditions, both domestically and internationally; |
|--------------------|---------------------------------------------------------------------------------|

| §   | price competition in the furniture industry; |
|--------------------|----------------------------------------------|

| §   | changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | risks associated with the cost of imported goods, including fluctuations in the prices of purchased finished goods and transportation and warehousing costs; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | supply, transportation and distribution disruptions, particularly those affecting imported products; |
|--------------------|------------------------------------------------------------------------------------------------------|

| §   | adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices of key raw materials, transportation and warehousing costs, domestic labor costs and environmental compliance and remediation costs; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our ability to successfully implement our business plan to increase sales and improve financial performance; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| §   | achieving and managing growth and change, and the risks associated with acquisitions, restructurings, strategic alliances and international operations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | risks associated with distribution through retailers, such as non-binding dealership arrangements; |
|--------------------|----------------------------------------------------------------------------------------------------|

| §   | capital requirements and costs; |
|--------------------|---------------------------------|

| §   | competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| §   | changes in consumer preferences, including increased demand for lower quality, lower priced furniture due to declines in consumer confidence and/or discretionary income available for furniture purchases and the availability of consumer credit; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective products. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 3.                        Quantitative and Qualitative Disclosures about Market Risk

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Controls and Procedures

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Item 6.                        Exhibits

|   | 3.1 | Amended and Restated Articles of Incorporation of the Company, as amended March 28, 2003 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended February 28, 2003) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended August 31, 2006) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Amended and Restated Articles of Incorporation of the Company (See Exhibit 3.1) |
|--------|-----|---------------------------------------------------------------------------------|

|   | 4.2 | Amended and Restated Bylaws of the Company (See Exhibit 3.2) |
|--------|-----|--------------------------------------------------------------|

|   | 10.1* | Summary of Fiscal 2011 Salary and Bonus for Named Executive Officers** |
|--------|-------|------------------------------------------------------------------------|

|   | 31.1* | Rule 13a-14(a) Certification of the Company’s principal executive officer |
|--------|-------|---------------------------------------------------------------------------------|

|   | 31.2* | Rule 13a-14(a) Certification of the Company’s principal financial officer |
|--------|-------|---------------------------------------------------------------------------------|

|   | 32.1* | Rule 13a-14(b) Certification of the Company’s principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ____________ |
|--------------|

| *Filed herewith |
|-----------------|

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SIGNATURE

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