Hooker Furnishings Corp. said it plans to exit the Accentrics Home e-commerce business of its Home Meridian segment as part of an effort to return the money-losing arm to profitability.

The Martinsville, Va., home-furnishings company, which also plans to reposition its Prime Resources International unit as a direct-container-only business model, said it expects to post a roughly $34 million noncash charge related to the exit, including inventory write-downs.

Hooker said the Accentrics Home model requires significant amounts of inventory investment to support its quick-ship requirements, and that the operational costs related to the low-priced, lower-margin items don't allow a path of consistent profitability.

The company said it expects Accentrics Home's operating loss will account for more than 60% of Home Meridian's operating loss for its recently completed 2023 fiscal year, while only chipping in 13% of revenue.

Hooker's Home Meridian segment accounted for about 38% of the company's sales for the first nine months of fiscal 2023 but recorded an operating loss of $7.3 million for the period.