Culp, the leading provider of fabrics for bedding and upholstery fabrics for residential and commercial furniture, headquartered in High Point, North Carolina, has sold its mattress fabric manufacturing facility in Quebec, Canada for CA$8.6 million (US$6.2 million).

“I’d like to thank our team for their efficiency in executing on our restructuring plan,” said the company’s president and CEO Iv Culp. “Our ability to reshape the cost structure of our mattress fabric business and complete the final step of selling our facility in Canada within a year is a testament to their focus and dedication. We were pleased to monetise the facility in what ultimately proved to be a softer local industrial market than originally anticipated that was made more challenging by some re-zoning and utility service issues impacting the property.

“Exiting the facility also allows us to avoid monthly carrying costs in the six figures for insurance, maintenance and the like going forward, and the cash proceeds from the sale further strengthen our balance sheet and liquidity as we enter our new fiscal year.

“Consolidating our Canada operations into our US platform was a difficult decision, but we never hesitate to make changes when in the best interests of our customers and shareholders. Our new streamlined operating model, along with an expanded US manufacturing capacity and nearshore and offshore options in Haiti/Dominican Republic, Vietnam, Turkey and China, offers customers a uniquely flexible and cost-effective supply chain to bring their products to market in the current trade environment.”

www.culp.com