Hooker Furniture (HOFT) Terminates Company's Employee Stock Ownership Plan
In a move to reduce costs, increase competitiveness and better align employee benefits with its new business model, Hooker Furniture (NASDAQ: HOFT) announced it has terminated the Company's Employee Stock Ownership Plan effective January 26, 2007.
The termination will result in a $18.4 million, one-time, non-cash, non-tax deductible charge to earnings in January. Going forward, Hooker expects that elimination of the ESOP compensation expense will yield significant annual cost savings. Annual ESOP compensation expense has averaged $3.4 million for 2004 through 2006, and the Company believes the annual compensation expense for 2007 and beyond could have been substantially higher.
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