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Restructuring, Impairment and Other Related Charges
 3 Months Ended
Mar. 31, 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 first quarter of 2025 in the unaudited condensed consolidated statement of operations (in thousands):

 

   Cost of
Revenues		   Restructuring,
Impairment
and Other
Related
Charges		   Total 
Cash charges:            
Employee-related costs  $
—
   $171   $171 
Other costs   688    1,154    1,842 
Total cash charges   688    1,325    2,013 
Non-cash charges:               
Accelerated depreciation   230    
—
    230 
Write-down of long-lived assets   
—
    635    635 
Total non-cash charges   230    635    865 
Total restructuring, impairment and other related charges  $918   $1,960   $2,878 

 

Accelerated depreciation primarily represents $0.2 million of 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 will remain in service.

 

The $0.6 million write-down of long-lived assets represents the write-down to salvage value of other property and equipment located at the two Utah manufacturing facilities that were closed.

 

The $2.0 million of cash charges relates to costs incurred in shutting down and transitioning operations from the two Utah manufacturing facilities that were closed.