Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 51

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 51
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 be materially different from our actual results, and therefore could adversely affect the success of this restructuring plan. 

The above-referenced conditional agreement for the sale of our Canadian facility includes a purchase price of $15.5 million CAD ($10.8 million USD as of January 26, 2025) contingent on the satisfaction of certain due diligence and closing conditions.  Assuming the completion of the transaction, the company currently expects the proceeds from the sale (net of all taxes and commissions) to exceed the amount of cash restructuring charges incurred.   

The following summarizes the restructuring and restructuring related charges for the mattress fabrics segment for the three-month and nine-month periods ended January 26, 2025:

    Three Months Ended
     
    Nine Months Ended

    (dollars in thousands)
     
    January 26, 2025
     
    January 26, 2025

    Additional depreciation expense for shortened useful lives of equipment
     
    $
    —
     
    $
    1,339

    Employee termination benefits

    176

    1,326

    Lease termination costs

    —

    849

    Other associated costs

    1,504

    2,676

    Loss on disposal, valuation, and markdowns of inventory

    624

    1,509

    Net gain on disposal of equipment

    (33
    )
     
    (42
    )

    Restructuring expense and restructuring related charges (1) (2)
     
    $
    2,271
     
    $
    7,657

I-37

(1) Of the total $2.3 million restructuring and restructuring related charges, $1.8 million and $624,000 were classified within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the three-month period ended January 26, 2025.  

(2) Of the total $7.7 million restructuring and restructuring related charges, $6.2 million and $1.5 million were classified within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the nine-month period ended January 26, 2025.

Refer to Note 10 of the consolidated financial statements for further details.

Segment assets

Segment assets consist of accounts receivable; inventory; property, plant, and equipment; right of use assets; and assets held for sale:

    (dollars in thousands