Hooker Furnishings is leaving its Tradeport East facility, according to company officials.

The company informed the Liberty County Development Authority of its intention to leave the park this morning. The decision affects 27 employees and the company projects leaving its space by the end of June.

Hooker opened its 800,000 square foot facility in December 2021 and at the time, it was the largest facility in company history.

“This decision was not made lightly, and we deeply appreciate the support we have received from Liberty County,” Hooker senior vice president for U.S. operations Scott Prillaman wrote in the letter to the LCDA.

Several factors led to the decision, including Hooker Furnishings purchase of Home Meridian International in 2016. The Accentrics Home branch had been a thriving e-commerce division that led Hooker to establish a distribution center in Liberty County, Prillaman wrote.

But the acquisition of Home Meridian did not bring the success Hooker had anticipated, and a significant portion of the losses stemmed from the Accentrics Home branch. A sharp rise in post-COVID container freight rates from Asia – going from $4,000 to $25,000 – per container in some cases impacted the Accentrics Home competitive position, Prillaman added.

The ACH business model became high-risk, low-reward, Prillaman continued, and the company got out the brand and had a $24 million write-down of inventory housed in Midway in 2023.

In addition, “the past two years have brought historically low housing sales and broader economic headwinds, including rising tariffs,” Prillaman said. “Given these factors, we have determined that right-sizing our operations and vacating the Liberty County facility is necessary to preserve jobs and ensure the long-term stability of our business.”

Safavieh is expected to take Hooker’s space and continue furniture distribution operations. Hooker Furnishings also has a provided a bonus and severance package of more than $255,000 to its Liberty County workforce.

“One of the most difficult aspects of this decision is the impact on our dedicated employees in Liberty County,” Prillaman wrote. “We take immense pride in the team we have built, and our priority is to support them during this transition.”

Hooker is working with the incoming tenant and other potential employers to help its personnel find new positions, “ideally within the same facility,” Prillaman added.