Culp To Combine Two Stand-alone Divisions For Flexibility And Growth; To Cut Costs By $3 Mln

Culp

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(RTTNews) - Culp, Inc. (CULP), a provider of fabrics for bedding and upholstery, announced Thursday the strategic transformation of its operating model to further position the Company for flexibility and growth.

The Company will combine its two stand-alone operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a single, integrated business designed to optimize operational agility and collaboration. This will help to further streamline costs and processes across its business, and, most importantly, increase responsiveness to customer needs and market trends.

Initially, the Company will close the leased facility operated by its upholstery fabrics division in Burlington, North Carolina, and transition the production and distribution activities there to a shared management model within the Company-owned facility in Stokesdale, North Carolina, currently operated by its mattress fabric division.

The Company expects to generate annualized efficiency improvements and cost reduction benefits of approximately $3 million after completion of the Burlington facility closure and other integration initiatives, with the potential for additional savings going forward.

This is incremental to the approximately $10 to $11 million in annualized savings and operating improvements expected from the recent completion of the Company's cost restructuring plan announced in May of 2024, which was focused primarily on the mattress fabrics division.

As part of the integration, Mary Beth Hunsberger, formerly President of the Culp Upholstery Fabrics division, has been appointed Chief Operating Officer of Culp, Inc., and Tommy Bruno, formerly President of the Culp Home Fashions division, will now serve as Culp, Inc.'s Chief Commercial Officer.

The newly integrated Culp, Inc. will maintain its headquarters in High Point, North Carolina.