Culp, Inc. Finalizes Sale of Quebec Manufacturing Facility
Furniture World News Desk on
5/12/2025
Culp, Inc., a provider of fabrics for bedding and upholstery across residential and commercial sectors, has completed the sale of its mattress fabric manufacturing facility located in Quebec, Canada. The sale concludes the company’s restructuring plan announced in 2024.
The facility was sold for CA$8.6 million (approximately USD$6.2 million), with CA$2.0 million (USD$1.4 million) paid at closing. The remaining balance is scheduled to be paid, with interest, within the next six to twelve months. Culp expects to realize approximately $3.0 to $3.5 million in net cash proceeds after taxes and commissions, which will be used to reduce debt and enhance liquidity.
“I’d like to thank our team for their efficiency in executing on our restructuring plan. 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,” said Iv Culp, President and CEO of Culp, Inc. “We were pleased to monetize the facility in what ultimately proved to be a softer local industrial market than originally anticipated that was made more challenging by some rezoning 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.”
Culp added, “I’d also like to thank all of our former associates and the community in Quebec for their contributions to the long run of success we enjoyed there. Consolidating our Canada operations into our U.S. 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 U.S. 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.”
About Culp, Inc
Culp, Inc. is one of the largest marketers of fabrics for bedding and upholstery fabrics for residential and commercial furniture in North America. The company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp’s manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, China, Haiti, Turkey, and Vietnam.