Purple Innovation consolidating manufacturing operations

Purple Innovation announced the consolidation of its mattress production operations into its McDonough, Georgia facility, and the corresponding closure of two manufacturing facilities in Salt Lake City and Grantsville, Utah. The closure of the Utah manufacturing facilities is expected to be completed during Q1 2025 and the consolidation into the McDonough, Georgia facility is expected to be completed by December 31, 2024. Purple will remain headquartered in Utah with its 4 showrooms; all R&D activities will continue to be based in the Innovation Center that Purple opened in Draper, Utah last year. The company expects to open a new distribution center in Utah. Purple also plans to increase capacity at its Georgia manufacturing facility. The company also plans to reduce a number of positions at the corporate level. These actions are expected to be completed in early 2025 and generate $15M-$20M in EBITDA benefit on an annualized run-rate basis starting in 2025. The company expects to incur restructuring costs of $35M-$45M, beginning in 3Q24 through 2Q25, of which $26M-$32M is non-cash. The company does not expect these actions to impact full-year 2024 guidance targets.