Hooker Furnishings (HOFT) Faces Global Value Investment’s Criticism for Strategic Missteps and Shareholder Value Destruction

Global Value Investment Corp. (GVIC) released a June 3, 2025 presentation blasting Hooker Furnishings (HOFT) for governance failures and value destruction. GVIC, a 5.1% holder since 2020, highlights HOFT’s poor returns (-42% 1-yr, -37% total return since 2020) and a series of operational missteps: a costly exit from the clubs channel, $24M inventory write-downs, $17M in ERP spending with little payoff, and $176M in acquisitions that coincided with operating income collapsing from +$24M (2016) to -$18M (2025). GVIC also criticizes the board’s lack of alignment—directors own less than 2% of shares, with minimal personal stakes despite long tenures. It calls HOFT’s governance “inadequate” and says new oversight is required to enforce strategic discipline, improve capital allocation, and restore long-term value.