MARTINSVILLE, Va. — Hooker Furnishings Corporation has announced it has entered into a definitive agreement to sell its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings, Inc. Following the terms of the asset purchase agreement, an estimated purchase price will be determined and paid at closing based upon the net book value of the assets being sold in the transaction. 

As of November 2, 2025, the company’s fiscal third-quarter end, the currently estimated purchase price is approximately $4.8 million, subject to final adjustments to closing values, pursuant to the terms of the asset purchase agreement. The company will also shed approximately $4.8 million in Home Meridian (HMI) showroom lease liabilities and related expenses, as Magnussen will assume the lease of HMI’s High Point showroom.

“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,” said Jeremy Hoff, CEO of Hooker Furnishings. “We are excited to move forward as a nimbler business with an efficient cost structure and clear growth priorities. We have promising growth opportunities on the horizon following the launch last month of our Margaritaville licensed collection. Together with our remaining portfolio and ongoing cost reductions of over $25 million, we are more confident than ever that we are well-positioned to enhance shareholder value.”

Hooker Furnishings will retain the Samuel Lawrence Hospitality brand, which is expected to become part of its “All other” segment. The transaction is subject to customary closing conditions, including third-party consents, and is currently expected to close by mid-December 2025. Ten percent of the purchase price paid at closing will be subject to a holdback for 210 days for customary indemnification and final purchase price adjustments.

In connection with the transaction, the company expects to record $5 to $6 million in non-cash impairment charges, net of expected lease gains upon termination. These impairment charges are primarily related to the write-down of HMI intangibles and fixed assets.

Stump & Company served as financial advisor to Hooker, and McGuireWoods LLP served as legal advisor to the company in connection with the sale transaction.

Hooker will provide a further update on its business, including the sale of these two brands within HMI, during its fiscal 2026 third-quarter earnings call on Thursday morning, December 11, 2025, at 9:00 am Eastern Time. Hooker's 2026 fiscal year third quarter began on August 4, 2025, and ended on November 2, 2025.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://investors.hookerfurnishings.com/events and archived for replay.