Hooker Furnishings Corporation announced the sale of its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings, Inc.
The estimated purchase price is approximately $4.8 million, subject to final adjustment at closing.
The company aims to streamline its portfolio, strengthen profitability, and focus on brands that generate consistent earnings.
Streamlining Portfolio
Sold Pulaski Furniture and Samuel Lawrence Furniture brands to Magnussen Home Furnishings, Inc.
Estimated Purchase Price
Approximately $4.8 million, subject to final adjustment at closing.
Business Strategy
Sharpening focus on brands generating consistent earnings to enhance shareholder value.
Ongoing Cost Reductions
Over $25 million in cost reductions planned, aiming for an efficient cost structure.
- The sale will lead to shedding approximately $4.8 million in Home Meridian showroom lease liabilities and related expenses.
- The company expects $5 to $6 million in non-cash impairment charges related to the transaction.
The sale reflects Hooker Furnishings Corporation's strategic effort to enhance profitability and focus on core brands with growth potential. The company's streamlined portfolio and cost reductions position it for future growth opportunities.