Hooker Furnishings closes $6.1M sale of two brands

Martinsville-based furniture maker Hooker Furnishings has completed the sale of its Pulaski Furniture and Samuel Lawrence Furniture case goods brands to Magnussen Home Furnishings for approximately $6.1 million, the company confirmed on Monday, marking what executives call a key step in its effort to streamline operations and improve profitability.

The transaction includes a customary post-closing adjustment, with 10% of the purchase price subject to a 210-day holdback for indemnification and final purchase price true-ups. The company announced the transaction in early December, and the estimated purchase price at the time was approximately $4.8 million.

As part of the deal, Magnussen will assume the lease for Home Meridian International’s High Point showroom, allowing Hooker to shed approximately $4.8 million in showroom lease liabilities and related expenses.

“Completing this transaction marks a significant milestone in our journey toward enhanced profitability, and we are pleased to complete the transaction at a higher price than initially estimated,” CEO Jeremy Hoff said in a statement. “We are moving ahead with positive momentum after delivering a modest improvement in sales and margins within Hooker Branded and Domestic Upholstery for the fiscal third quarter, and we are excited for the significant opportunity ahead with our Margaritaville licensed collection.”

Hoff added that the company plans to continue returning capital to shareholders through its newly announced share repurchase program while investing in its streamlined business.

Stump & Co. served as financial adviser to Hooker, while McGuireWoods acted as legal adviser in connection with the transaction.

The sale follows Hooker’s fiscal 2026 third quarter earnings report, in which the company reported a wider net loss driven largely by non-cash impairment charges and lower hospitality shipments, but in the report and follow-up investor call, executives cited improving margins in core segments, a significantly reduced cost structure and early retailer commitments for the Margaritaville licensed collection as signs the company is positioning itself for future growth.