During fiscal 2025, the Madison, North Carolina facility was sold as part of the plan to consolidate the Americas yarn manufacturing operations. The Company entered into an amendment to the purchase agreement for the potential payment of deferred compensation to UNIFI in the amount of (i) $8,000, if certain energy supply conditions are met within two years of closing, (ii) $5,000, if the same conditions are not met within two years of closing but are met within three years of closing, and (iii) up to $5,000, if certain additional energy conditions beyond those referred to in (i) and (ii) are met within four years of closing. The maximum potential future payments to UNIFI are $13,000. No amounts related to such future payments have been recorded in the Condensed Consolidated Financial Statements as of September 27, 2026.

In fiscal 2026, UNIFI incurred transition costs related to the consolidation of Americas yarn manufacturing operations for facility closure and equipment relocation costs including asset impairments and disposals net of any salvage proceeds and employee separation costs that were recorded within Restructuring costs, net in the Condensed Consolidated Statements of Operations.

During October 2025, UNIFI implemented additional cost-saving initiatives that included reducing variable manufacturing costs across labor, spend, and support functions, while also eliminating salaried positions in the U.S. (the “Fiscal 2026 Profit Improvement Plan”). However, no costs were incurred during the prior year quarter related to the Fiscal 2026 Profit Improvement Plan.

The restructuring expenses (benefits) incurred in all periods primarily impacted the Americas Segment.

A summary of the restructuring activities consists of the following:


	For the Three Months Ended
	September 27, 2026		September 28, 2025
Facility closure and equipment relocation costs	$	—	$	1,021
Employee separation costs		—		47
Restructuring costs, net		—		1,068

Beginning Liability		—		289
Restructuring costs, net		—		1,068
Cash payments		—		(942	)
Loss on disposals of assets		—		(193	)
Ending Liability	$	—	$	222

Transition Costs

On August 16, 2026, UNIFI entered into a purchase agreement for the sale of two non-strategic real estate assets in Yadkinville, North Carolina. During the three months ended September 27, 2026, UNIFI incurred various transition costs totaling $265 in connection with the pending sale of these two real estate assets. These transition costs were recorded in Other operating expense, net in the Condensed Consolidated Statements of Operations.