Core Insights - Hooker Furnishings Corporation has completed the sale of the Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings for approximately $6.1 million, with certain post-closing adjustments [1][2] - The CEO of Hooker Furnishings highlighted that this transaction is a significant milestone towards enhanced profitability and was completed at a higher price than initially estimated [2] - The company has experienced a modest improvement in sales and margins in its Hooker Branded and Domestic Upholstery segments during the fiscal third quarter [2] Financial Details - The sale price of $6.1 million includes a holdback of ten percent for 210 days for customary indemnification and final purchase price adjustments [2] - Hooker Furnishings has also shed approximately $4.8 million in showroom lease liabilities as Magnussen assumes the lease of HMI's High Point showroom [2] Strategic Outlook - The company is optimistic about future opportunities, particularly with the Margaritaville licensed collection and plans to create shareholder value through a new share repurchase program [2] - The focus on a more streamlined business model is expected to enhance operational efficiency as the company moves into the next calendar year [2] Company Background - Hooker Furnishings Corporation is a designer, marketer, and importer of various home furnishings, including casegoods, leather, and fabric-upholstered furniture, with a history spanning 101 years [4] - The company operates in multiple markets, including residential, hospitality, and contract, and has manufacturing facilities in Virginia, North Carolina, and California [4]

Core Viewpoint - Hooker Furnishings Corporation has entered into a definitive agreement to sell its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings, aiming to streamline its portfolio and enhance profitability [1][2] Financial Details - The estimated purchase price for the transaction is approximately $4.8 million, subject to final adjustments at closing based on the net book value of the assets sold [1] - The company will also eliminate approximately $4.8 million in Home Meridian showroom lease liabilities, as Magnussen will assume the lease of HMI's High Point showroom [1] - Hooker expects to record non-cash impairment charges between $5 to $6 million related to the write-down of HMI intangibles and fixed assets [3] Strategic Focus - The CEO of Hooker Furnishings emphasized that this sale is part of a multi-year effort to focus on brands that generate consistent earnings and to create a more efficient cost structure [2] - The company plans to retain the Samuel Lawrence Hospitality brand, which will be included in its "All other" segment [2] - Hooker is optimistic about future growth opportunities, particularly following the recent launch of its Margaritaville licensed collection [2] Transaction Timeline - The transaction is subject to customary closing conditions and is expected to close by mid-December 2025 [2] - Ten percent of the purchase price will be held back for 210 days for customary indemnification and final purchase price adjustments [2] Upcoming Events - Hooker Furnishings will provide further updates on its business and the sale during its fiscal 2026 third quarter earnings call scheduled for December 11, 2025 [4]