Hooker Furnishings Announces Sale of Two Brands to Magnussen Home
MARTINSVILLE, Va. — Hooker Furnishings Corp. has agreed to sell its Pulaski Furniture and Samuel Lawrence Furniture case goods brands to Magnussen Home Furnishings for a reported total of about $4.8 million.
Under the asset purchase agreement, the final purchase price will be set at closing and based on the net book value of the assets included in the deal. As of Hooker’s fiscal third quarter end on November 2, the estimated purchase price stands at roughly $4.8 million, subject to final adjustments as closing values are determined.
In addition, Hooker Furnishings expects to remove about $4.8 million in Home Meridian showroom lease liabilities and related costs, since Magnussen will assume the lease for HMI’s showroom in High Point.
Related coverage:
- Magnussen Home agrees to acquire two former HMI brands
- Hooker Furnishings posts widening losses in Q2, but eyes a return to profitability
Quote from Hooker’s CEO
“This sale marks a pivotal step in our multi-year plan to streamline the portfolio and boost profitability by concentrating on brands with steadier earnings,” said Jeremy Hoff, CEO of Hooker Furnishings. “The company will operate more nimbly with a leaner cost structure and clear growth priorities.” Hoff added that growth opportunities remain on the horizon, highlighted by the Margaritaville licensed collection launched last month. With the remaining brands, ongoing cost reductions of more than $25 million, and a stronger focus on shareholder value, the company is better positioned to drive long-term gains.
Post-transaction, Hooker will retain the Samuel Lawrence Hospitality brand, which is expected to be reclassified within the company’s “All other” segment.
Deal specifics and timing
- The transaction is subject to standard closing conditions, including third-party consents, and is anticipated to close by mid-December 2025.
- Ten percent of the purchase price will be held back for 210 days to cover customary indemnification and final price adjustments.
- Hooker expects non-cash impairment charges in the range of $5 million to $6 million, net of anticipated lease gains from lease terminations.
Advisors
Stump & Company acted as financial advisor to Hooker Furnishings, with McGuireWoods LLP providing legal counsel for the sale.
This news underscores Hooker’s ongoing strategy to streamline operations, reduce costs, and focus on high-potential brands that contribute to sustained profitability.
