Investment in Unconsolidated Joint Venture

6 Months Ended

Nov. 03, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Joint Venture

9. Investment in Unconsolidated Joint Venture

Culp International Holdings, Ltd. (Culp International), a wholly-owned subsidiary of the company, entered into a joint venture agreement, pursuant to which Culp International owns fifty percent of Class International Holdings, Ltd. (CLIH). CLIH produces cut and sewn mattress covers, and its operations are located in a modern industrial park in northeastern Haiti, which borders the Dominican Republic. CLIH commenced production in the second quarter of fiscal 2018 and complements our mattress fabric operations with a mirrored platform that enhances our ability to meet customer demand while adding a lower cost operation to our platform.

CLIH reported a net loss of $6,000 and $263,000 for the

six-month

periods ending November 3, 2019, and October 28, 2018, respectively. Our equity interest in CLIH’s net loss for the

six-month

periods ending November 3, 2019 and October 28, 2018 was $3,000 and $132,000, respectively.

The following table summarizes information on assets, liabilities

and members’ equity of our equity method investment in CLIH:


	November 3,		October 28,		April 28,
(dollars in thousands)	2019		2018		2019
Total assets	$	3,190	$	3,063	$	3,126
Total liabilities	$	182	$	124	$	111
Total members’ equity	$	3,008	$	2,939	$	3,015

At November 3, 2019, October 28, 2018, and April 28, 2019, our investment in CLIH totaled $1.5 million, which represents the company’s fifty percent ownership interest in CLIH.