A U.S. mattress brand with annual sales exceeding $500 million, is set to close two of its production facilities in Utah—Salt Lake City and Grantsville—by March 2025. The brand, Purple Innovation, is a direct-to-consumer company, headquartered in Draper, Utah. It will consolidate its manufacturing operations at its facility in McDonough, Georgia, which it plans to expand by year-end.
The consolidation is expected to save Purple between $15 and $20 million annually. However, the company will incur restructuring charges of $35 to $45 million in the third quarter, mostly non-cash. This move will lead to the reduction of about 220 jobs, approximately 13% of its workforce based on the latest figures of 1,700 employees.
Photo: Dreamstime.
Purple, which operates both online and through over 3,000 retail locations in the U.S. and Canada—including 60 branded stores—has previously expressed interest in expanding into international markets like the U.K., though it does not currently sell there.
Source: www.thefurnishingreport.com