Utah, US – Purple is to consolidate its manufacturing operations with the aim of accelerating growth. The company said it expects the changes will increase EBITDA by $15m to $20m in 2025, with restructuring costs in the range $35m to $45m.
It plans to close its two Utah factories, in Salt Lake City and Grantsville, and relocate their manufacturing activities into its facility in McDonough, Georgia, where capacity will be increased. The consolidation into the Georgia plant should be completed by the end of the year, it said, and the closure processes in Utah during the first quarter of 2025.
CEO Rob DeMartini said the moves will help the company streamline operations, and allow it to invest in technology and marketing for future growth. “This decision was not made lightly,” he said. “Over the past year, we have driven savings through manufacturing efficiency and supply chain initiatives, and we are confident that the consolidation of our manufacturing footprint is an important step … which will set Purple up for positive operating cash flow and market share growth over the long-term.”
The company’s HQ will remain in Utah, and R&D will continue to be based at the innovation centre in Draper, UT that was opened last year. It also plans to open a new distribution centre in Utah.
