Hooker exits Georgia warehouse as part of consolidation effort

Martinsville-based Hooker Furnishings announced this week that it will end operations at its Savannah, Georgia, warehouse as part of a consolidation effort.

“Our decision to exit our Savannah distribution facility was not taken lightly,” Hooker Furnishings CEO Jeremy Hoff said in a statement. “We deeply appreciate the hospitality and support received from the state of Georgia, the Georgia Ports Authority and from the Liberty County Development Authority, in particular.”

Hooker began its Savannah operations in October 2021 for its Accentrics Home brand, which is positioned in the company’s Home Meridian (HMI) segment. Soon after operations began, Accentrics’ competitive position was “severely eroded by a sharp rise in post-COVID container freight rates from Asia, which jumped from approximately $4,000 to more than $25,000 per container in some cases at the time,” according to a news release.

“The sharp rise in container freight rates made ACH’s once-thriving line of high-volume, lower-priced, low-margin accent items unsustainable,” Hoff said. “Despite the temporary elevation in freight rates, it became obvious ACH’s business model would continue to be high-risk and low reward.”

In 2024, the company decided to close Accentrics and liquidate its inventory, part of a larger move to exit unprofitable businesses at HMI. Shortly after, Hoff said the company began reducing its Savannah footprint through a series of sub-leases and lease amendments with its landlord.

Hoff said the company is working with Liberty County, its Savannah warehouse employees, the landlord and new tenants to ensure a smooth transition.

“One of the most difficult aspects of this decision is the impact on our dedicated employees in Liberty County,” he said. “We take immense pride in the team we’ve built, and our priority is to support them during this transition. We are collaborating with the incoming tenant and other potential employers to help our employees secure positions, ideally within the same facility. Additionally, we have provided exit benefits to affected employees, with the goal of easing their transition, regardless of the path they choose.”

Hooker says it will provide more detail on the financial impact of the exit in its next earnings report on April 17. Right now, it expects charges of between $1.6 million and $2 million in fiscal 2025 and between $3 million to $4 million in fiscal 2026 related to the exit. It expects preliminary savings of between $750,000 to $1 million in net operating expenses in fiscal 2026, and annualized savings between $4 million to $4.5 million beginning in fiscal 2027. It stressed that these estimates are preliminary and could change.