Culp, Inc. has announced a significant restructuring plan aimed at reducing costs, improving asset utilization, and driving performance and profitable growth. This plan will primarily impact the company’s mattress fabrics segment, with some actions affecting its upholstery fabrics segment. The key strategic actions include:
Consolidating North American Mattress Fabrics Operations : This includes a phased wind-down and closure of the manufacturing plant in Quebec, Canada, and relocating knitting and finishing capacity to the Stokesdale, North Carolina facility.
Consolidating the Haiti Operations : Merging the Haiti sewn mattress cover operation into one building on the Dominican Republic/Haiti border to significantly reduce operating expenses.
Restructuring Chinese Operations : Aligning the upholstery fabrics finishing operation in China with current demand while continuing to leverage strategic supply relationships.
Transition to a Strategic Sourcing Model : Shifting of the mattress fabrics weaving operation to a strategic sourcing model through long-standing supply partners to enhance competitiveness and value for customers.
Reducing Corporate Expenses : Targeting annualized savings of $1.5 million by reducing unallocated corporate and shared services expenses.
Optimizing Stokesdale Opera-tions : Enhancing the maximum efficiency and throughput by optimizing volume and equipment.
FTC challenges Tempur Sealy’s $4 Billion acquisition of Mattress Firm
Tempur Sealy’s proposed $4 billion acquisition of Mattress Firm is being challenged by the Federal Trade Commission (FTC), the antitrust agency announced on Tuesday.
The FTC unanimously voted to go to federal court to block the merger of the nation’s largest mattress maker with the largest bedding retailer. The FTC argues that the combined company would have “the ability and incentive to suppress competition and raise prices for mattresses for millions of consumers.”
According to the FTC, Tempur Sealy intends to limit competitors’ access to Mattress Firm’s nationwide network of stores, which would significantly hinder their ability to compete. This move could lead to factory closures and layoffs among predominantly American manufacturers.
“Through emails, presentations, and other deal documents,Tempur Sealy has made it clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” said Henry Liu, Director of the FTC’s Bureau of Competition.
Tempur Sealy dismissed the FTC’s concerns, stating, “We continue to believe the combination of Tempur Sealy and Mattress Firm will unlock incremental benefits for all stakeholders, specially consumers.”
Based in Lexington, Kentucky, Tempur Sealy believes the merger, announced in May 2023, will withstand the FTC’s court challenge, allowing the transaction to close late this year or in early 2025. Tempur Sealy’s products are sold online and at more than 700 company-owned stores worldwide, while Mattress Firm, owned by world famous South African retailer Steinhoff International, operates over 2,400 stores in 49 U.S. states.