High Point, North Carolina-based fabric supplier Culp Inc. is combining its two stand-alone operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a single integrated business. The company said this strategic transformation will enable it to optimize operational agility, streamline costs and processes across its business and increase responsiveness to customer needs and market trends.
According to a news release, Culp will close its leased upholstery fabrics facility in Burlington, North Carolina, consolidating production and operations at the company-owned facility in Stokesdale, North Carolina, currently operated by its mattress fabric division. This move and other integration initiatives are expected to generate approximately $3 million in annualized efficiency improvements and cost reductions. These savings are in addition to the approximately $10 million to $11 million in annualized savings and operating improvements of a cost-restructuring plan announced in May 2024. That initiative included consolidating sewn-cover operations, outsourcing knitting and damask-weaving production, and closing and transferring the operations and equipment of the company’s Canadian facility to Stokesdale. Proceeds from the sale of the Canadian facility will go toward debt reduction and improvements in financial flexibility.
“I’m proud of the work our team is doing to transform our business and excited about this next chapter in Culp’s over 50-year history,” Iv Culp, president and CEO of Culp Inc. Said. “As we executed on our restructuring project, it became apparent that our two core businesses have evolved to a point where we can be more efficient and better serve our customers if we combine into one Culp-branded business. We see a variety of opportunities to create synergies through a more centralized and cross-functional operating model coupled with a unified management team focused on the home furnishings industry holistically and unencumbered by product, customer or market-specific boundaries. We believe this will create a stronger and more nimble Culp organization ready to maximize the collective talent and resources of both of our legacy divisions. In an uncertain macroeconomic environment, this more streamlined approach positions us to succeed across a range of demand scenarios.”
Culp emphasized: “This is a substantial undertaking that involves some facility consolidation, equipment relocation and other operational adjustments, but no curtailment of production levels. Most importantly, it affects people and naturally involves some employment loss. While those are always difficult decisions, they also represent an inflection point for our company. We remain deeply grateful to the affected team members in Burlington and thank them for their dedication and contributions. We are committed to helping them make the best possible transition.”
According to Culp, this new strategic business model gives the company greater flexibility to adjust its supply chain and cost base as conditions warrant. “We believe our current manufacturing platform and supply chain optionality across the U.S., Haiti/Dominican Republic, Turkey, Vietnam and China is a differentiator for our business, especially as many in our industry seek alternatives to navigate the tariff landscape and look to Culp’s long history of providing customers with preferred, compliance-sophisticated sourcing solutions,” Culp said.
As part of the integration, Mary Beth Hunsberger, formerly president of the Culp Upholstery Fabrics division, has been appointed chief operating officer of Culp Inc.. and Tommy Bruno, formerly president of the Culp Home Fashions division, will now serve as Culp Inc.’s chief commercial officer.
The newly integrated Culp, Inc. will maintain its headquarters in High Point, North Carolina, the news release said.
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