Purple Innovation Inc., a Lehi-based manufacturer of gel technology beds, has announced it is ceasing manufacturing at its two Utah factories. The company will close its plants in Grantsville and Salt Lake City and consolidate all of its mattress production operations into its McDonough, Georgia, facility. The closure of the Utah manufacturing facilities is expected to happen during the first quarter of 2025 with the consolidation into the Georgia facility to be complete by Dec. 31, 2024.
Purple also announced plans to reduce a number of positions at its Lehi corporate office.
“These moves enable Purple to streamline our operations and to reinvest in technology and marketing to grow the category,” said Rob DeMartini, CEO of Purple Innovation. “This decision was not made lightly. Over the past year, we have driven savings through manufacturing efficiency and supply chain initiatives, and we are confident that the consolidation of our manufacturing footprint is an important step to advance our Grid innovation and build momentum with our strategy, which will set Purple up for positive operating cash flow and market share growth over the long term.”
The publicly traded Purple will remain headquartered in Lehi with its four showrooms. Research and development will continue at a facility Purple opened in Draper last year. DeMartini said that as part of the plan, the company expects to open a new distribution center in Utah and increase capacity at the Georgia manufacturing facility.
These changes are expected to generate $15 million to $20 million in gross savings after restructuring costs of $35 million to $45 million. The company said it does not expect these plans to impact full-year 2024 investor guidance targets.