Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 18

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 18
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 for the nine-month period ended January 26, 2025:  

        (dollars in thousands)
        Total

        Beginning balance (1)
        $
        3

        Expenses incurred (2)
         
        14

        Payments
         
        (17
        )

        Ending balance
        $
        —

       (1) Accrued restructuring expense of $3,000 was reported within accrued expenses in the Consolidated Balance Sheet for the period ended April 28, 2024.(2) Expenses incurred represent other associated costs and were recognized in our Consolidated Statement of Net Loss for the nine-month period ended January 26, 2025.   Ouanaminthe, Haiti Cut and Sew Upholstery Fabrics Operation During the third quarter of fiscal 2023, Culp Upholstery Fabrics - Haiti, Ltd. ("CUF Haiti") entered into an agreement to terminate a lease associated with one facility and, in turn, moved the production of upholstery cut and sewn kits to an existing facility leased by Culp Home Fashions - Haiti, Ltd. ("CHF Haiti") during the fourth quarter of fiscal 2023. Both CUF Haiti and CHF Haiti are indirect wholly-owned subsidiaries of the company. During the first quarter of fiscal 2024, demand for upholstery cut and sewn kits declined more than previously anticipated, resulting in the strategic action to discontinue the production of upholstery cut and sewn kits in Haiti.    The following summarizes our restructuring (credit) expense and restructuring related (credit) charge for the three months and nine months ended January 28, 2024: 

        Three Months Ended

        Nine Months Ended

        (dollars in thousands)
         
        Janaury 28, 2024

        Janaury 28, 2024

        Employee termination benefits
         
        $
        —

        $
        103

        Impairment loss - leasehold improvements and equipment

        —

        329

        Gains on sale of equipment

        (50
        )

        —

        (Gain) loss on disposal and markdowns of inventory

        (61
        )

        40

        Restructuring expense and restructuring related (credits) charges (1) (2)
         
        $
        (111
        )
         
        $
        472

        (1) Of the total $(111,000), $(50,000) and $(61