v3.26.1
Restructuring, Impairment and Other Related Charges
 6 Months Ended
Jun. 30, 2026
Restructuring, Impairment and Other Related Charges [Abstract]  
Restructuring, Impairment and Other Related Charges

3. Restructuring, Impairment and Other Related Charges

 

In August 2024, the Company initiated a restructuring plan to strategically realign the Company’s focus on the achievement of operational efficiencies that are expected to improve profitability and provide for reinvesting in technology and marketing initiatives (the “Restructuring Plan”). The Company’s Restructuring Plan includes the permanent closure of its Grantsville and Salt Lake City, Utah manufacturing facilities to consolidate mattress production in its Georgia plant, and a headcount reduction at the Company’s Utah headquarters to drive additional operating efficiencies. The consolidation into the Georgia facility was finalized in December 2024 and the closure of the two Utah manufacturing facilities was completed in May 2025. The reduction in workforce at the Utah headquarters was completed in August 2024. All restructuring activities were completed in the third quarter of 2025. 

 

The following table summarizes the restructuring, impairment and other related charges the Company recognized during the three and six months ended June 30, 2025 in the unaudited condensed consolidated statement of operations (in thousands):

 

    Three Months Ended
June 30, 2025		     Six Months Ended
June 30, 2025		  
          Restructuring,                 Restructuring,        
          Impairment                 Impairment        
          and Other                 and Other        
    Cost of     Related           Cost of     Related        
    Revenues     Charges     Total     Revenues     Charges     Total  
Cash charges:                                    
Employee-related costs   $ —     $ 183     $ 183     $ —     $ 354     $ 354  
Other costs     —       625       625       688       1,779       2,467  
Total cash charges     —       808       808       688       2,133       2,821  
Non-cash charges:                                                
Accelerated depreciation     77       148       225       307       148       455  
Write-down of long-lived assets     —       232       232       —       867       867  
Impairment of assets     —       2,949       2,949       —       2,949       2,949  
Total non-cash charges     77       3,329       3,406       307       3,964       4,271  
Total restructuring, impairment and other related charges   $ 77     $ 4,137     $ 4,214     $ 995     $ 6,097     $ 7,092  

 

Accelerated depreciation of $0.2 million and $0.5 million for the three and six months ended June 30, 2025, respectively, primarily represents increased depreciation expense associated with shortening the useful lives of the production equipment at the two Utah manufacturing facilities that were closed to reflect the remaining period these assets remained in service.

 

The write down of long-lived assets of $0.2 million and $0.9 million for the three and six months ended June 30, 2025, respectively, represents the write-down to salvage value of other property and equipment located at the two Utah manufacturing facilities that were closed.

 

Impairment of assets included impairment charges of $2.9 million for the three and six months ended June 30, 2025 associated with the closing and subleasing of the Salt Lake City, Utah and Grantsville, Utah manufacturing facilities and related impairment charges associated with certain leasehold improvements of the property.