Hooker Furnishings Corporation announced that it will sell its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings, Inc. The transaction will transfer the brands and associated assets for an estimated purchase price of approximately $4.8 million based on net book value, and will also transfer roughly $4.8 million of Home Meridian showroom lease liabilities to the buyer.
The deal is expected to close by mid‑December 2025 and will generate $5‑$6 million of non‑cash impairment charges net of lease gains, as Hooker writes down Home Meridian intangibles and fixed assets. By shedding these legacy brands, the company aims to eliminate margin‑compressing costs and concentrate on higher‑margin segments that drive profitability.
Hooker’s broader cost‑reduction plan targets $25 million in annualized savings by fiscal 2027. The divestiture aligns with that plan, removing underperforming assets and freeing capital for growth initiatives such as the Margaritaville licensed collection and the Samuel Lawrence Hospitality brand. Management said the move will make the company “nimbler” and better positioned to capture demand when it returns.
Prior quarter results show Hooker faced a $4.13 million net loss in Q3 2025 versus a $6.88 million profit in Q3 2024, driven by a 10.7% decline in net sales to $104.4 million. The sale is intended to reverse that trend by improving the balance sheet and reducing operating costs.
Investors reacted positively, reflecting confidence that the portfolio streamlining will strengthen the company’s financial health and operational focus.
CEO Jeremy Hoff said, “Today’s announcement is a major step in our multi‑year effort to streamline our portfolio and strengthen profitability by sharpening our focus on brands that generate consistent earnings.” He added that the company is on track to have the new expense structure largely in place by the end of the third quarter.
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