Mattress Maker Closes Utah Factories Amid Financial Pressures

Utah-based Purple Innovation Shifts Gears, Consolidates Production Out of State

Photo byAlex Mihai ConUnsplash

Purple Innovation, the renowned mattress manufacturer, has announced a significant restructuring of its operations, marking a major shift in the company's production strategy. The maker of GelFlex Grid mattresses will shutter two manufacturing facilities in Utah by the end of Q1 2025, consolidating its production at its Georgia plant by year-end.

This move follows recent corporate layoffs at the company's Utah headquarters, signaling a comprehensive cost-cutting initiative. Purple Innovation anticipates these measures will result in substantial savings, projecting an increase in EBITDA between $15 million and $20 million for the coming year.

The decision follows a challenging period for the company, which saw a 10.9% year-over-year decline in revenue in 2023, totaling $510.5 million, coupled with a 13.8% increase in operating costs. Despite seven consecutive quarters of declining sales, the company observed a modest upturn at the close of last year.

While Purple Innovation will maintain its corporate headquarters and four showrooms in Utah, this restructuring represents a pivotal moment in the company's efforts to streamline operations and improve financial performance in a competitive market.

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