Lehi, Utah — Mattress maker Purple Innovation Inc. will consolidate its manufacturing in Georgia, closing two production sites in Utah.
The Lehi-based maker of the Purple mattress brand — made using a proprietary "hyper-elastic polymer" — announced Aug. 24 that it will close sites in Salt Lake City and Grantsville, Utah, and concentrate manufacturing in McDonough, Ga.
The Georgia facility opened in 2020. The Utah sites will close in the first quarter of 2025, the company said. It did not state how many jobs will be affected. Purple expects to increase capacity in Georgia
It will retain its headquarters and research and development facility in Utah, but warned it expects to reduce the number of jobs at the corporate level.
"These moves enable Purple to streamline our operations and to reinvest in technology and marketing to grow the category," CEO Rob DeMartini said in a news release. "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 … set Purple up for positive operating cash flow and market share growth over the long-term."
Although the mattress firm posted strong growth when travel slowed due to COVID-19 restrictions, its sales dropped 21 percent in 2022. Sales have recovered, but Purple posted a $14.5 million loss for the second quarter of 2024, although that's an improvement from a $40.3 million loss for the same period in 2023.
At the same time, the company has been fighting an unwanted takeover attempt by minority shareholder Coliseum Capital Management LLC.