- Culp, Inc. (CULP, Financial) integrates its upholstery and home fashions divisions to boost operational agility and customer responsiveness.
- The strategic transformation is expected to yield $3 million in annualized savings from facility consolidations and operational adjustments.
- The restructuring complements $10-11 million in savings from prior initiatives, enhancing Culp's market positioning.
Culp, Inc. (CULP), a prominent provider of fabrics for bedding and upholstery in North America, has announced a strategic transformation of its operating model. This development integrates its two standalone operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a unified business. The integration aims to enhance operational agility, streamline costs, and improve customer responsiveness.
A key initial step involves closing its leased Burlington, North Carolina facility, with production and distribution activities being transitioned to the company's facility in Stokesdale, North Carolina. This move is projected to save the company approximately $3 million annually, with potential for further cost efficiencies in the future.
These changes build upon Culp's latest restructuring initiatives that were announced in May 2024. These previous efforts, primarily targeting the mattress fabrics division, are expected to generate annual savings of $10-11 million.
Iv Culp, CEO of Culp, Inc., expressed optimism about the new structure, stating it offers more flexibility in the supply chain and positions the company to better respond to market conditions. The organization remains committed to innovation as it prepares for its 2026 fiscal year.
Mary Beth Hunsberger and Tommy Bruno, leaders of the former divisions, have been appointed Chief Operating Officer and Chief Commercial Officer, respectively, to spearhead the integration.
Culp, Inc., with its headquarters in High Point, North Carolina, is aiming to leverage its manufacturing and sourcing capabilities across the U.S., Haiti/Dominican Republic, Turkey, Vietnam, and China, to navigate industry trends and return value to its shareholders.
