Hooker Furnishings to Exit Georgia Distribution Center

Core Viewpoint - Hooker Furnishings Corporation has decided to exit its Savannah, Georgia distribution center and consolidate operations in existing facilities due to unsustainable business conditions caused by rising freight costs and a shift in competitive positioning for its Home Meridian segment's Accentrics Home brand [1][2]. Company Operations - The Savannah distribution facility commenced operations in October 2021 but faced challenges shortly after due to a significant increase in post-COVID container freight rates, which rose from approximately $4,000 to over$25,000 per container [2]. - The company liquidated inventory and closed the Accentrics Home brand in 2024 as part of a broader strategy to exit unprofitable businesses within the Home Meridian segment [2][3]. - Hooker Furnishings Corporation is a designer, marketer, and importer of various home furnishings, including casegoods, upholstered furniture, and outdoor furniture, serving residential, hospitality, and contract markets [4][5]. Financial Implications - The company anticipates recording net charges of between $1.6 million and$2.0 million in fiscal 2025 and between $3.0 million and$4.0 million in fiscal 2026 related to the Savannah exit [3]. - Preliminary estimates suggest potential savings of between $750,000 and$1.0 million in net operating expenses in fiscal 2026, with annualized savings expected to be between $4.0 million and$4.5 million starting in fiscal 2027 [3].