Purple Innovation Files 8-K on Exit Costs and Disclosures

Ticker: PRPL · Form: 8-K · Filed: 2024-08-22T00:00:00.000Z

Sentiment: neutral

Topics: exit-costs, disposal-activities, regulation-fd, financial-statements

Related Tickers: PRPL

TL;DR

Purple Innovation (PRPL) filed an 8-K detailing exit costs and other disclosures.

AI Summary

Purple Innovation, Inc. filed an 8-K on August 22, 2024, disclosing costs associated with exit or disposal activities and providing a Regulation FD disclosure. The filing also includes financial statements and exhibits. The company, formerly known as Global Partner Acquisition Corp. until June 2, 2015, is incorporated in Delaware and headquartered in Lehi, Utah.

Why It Matters

This filing indicates potential restructuring or divestiture activities within Purple Innovation, Inc., which could impact its future financial performance and operational focus.

Risk Assessment

Risk Level: medium — Disclosures about exit or disposal activities can signal financial distress or significant strategic shifts, warranting closer investor scrutiny.

Key Players & Entities

FAQ

What specific activities are associated with the 'exit or disposal activities' mentioned in the filing?

The provided text does not specify the exact nature of the exit or disposal activities, only that costs are associated with them.

When did Purple Innovation, Inc. change its name from Global Partner Acquisition Corp.?

The company changed its name from Global Partner Acquisition Corp. on June 2, 2015.

What is the primary business of Purple Innovation, Inc. according to its SIC code?

Purple Innovation, Inc. is classified under SIC code 2510, which pertains to Household Furniture.

Where is Purple Innovation, Inc. headquartered?

Purple Innovation, Inc. is headquartered in Lehi, Utah, with its business address at 4100 N. Chapel Ridge Rd., Suite 200.

What other items are included in this 8-K filing besides the exit/disposal costs?

The filing also includes Regulation FD Disclosure and Financial Statements and Exhibits.

Filing Stats: 1,137 words · 5 min read · ~4 pages · Grade level 14.6 · Accepted 2024-08-22 16:10:09

Key Financial Figures

Filing Documents

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 22, 2024 Purple Innovation, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 001-37523 47-4078206 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 4100 North Chapel Ridge Rd. , Suite 200 Lehi , Utah 84043 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: ( 801 ) 756-2600 N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.0001 per share PRPL The NASDAQ Stock Market LLC Preferred Stock Purchase Rights N/A The NASDAQ Stock Market LLC Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (240.12b–2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ITEM 2.05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES On August 22, 2024, Purple Innovation, Inc. (the "Company") announced the planned closure of its manufacturing facilities in Grantsville, Utah and Salt Lake City, Utah and the consolidation of its manufacturing operations into its McDonough, Georgia facility. The Company reduced headcount at its Lehi, Utah headquarters to additionally drive operating efficiencies. The closure of the Utah manufacturing facilities is expected to be completed during the first quarter of 2025. The consolidation into the McDonough, Georgia facility is expected to be completed by December 31, 2024. The reduction in workforce at the Lehi, Utah headquarters was completed on August 22, 2024. These actions are expected to result in an estimated range of restructuring-related costs and charges of $35 million to $45 million, beginning in the third quarter of 2024 through the second quarter of 2025 and are expected to result in an approximate 13% net reduction of the Company's workforce. These costs and charges are estimated to range from $4 million to $6 million related to employee terminations, $5 million to $7 million in wind-down expenses related to the closure of the Utah manufacturing facilities and relocation to the McDonough, Georgia facility and $26 million to $32 million in non-cash charges related to disposition of equipment and other write downs. The Company estimates it will incur future cash expenditures in the range of $9 million to $13 million related to the restructuring. Once the restructuring is fully implemented, the Company expects annualized savings in the range of $15 million to $20 million, starting in 2025. ITEM 7.01 REGULATION FD DISCLOSURE On August 22, 2024, the Company issued a press release related to the consolidation of its mattress production operations into its McDonough, Georgia facility and the planned closure of two manufacturing facilities in Salt Lake City and Grantsville, Utah. A copy of this press release is furnished as Exhibit 99.1 to this report. The information in this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing. The press release furnished herewith in Exhibit 99.1 contains non-GAAP financial measures. Management believes non-GAAP financial measures assist management and investors in evaluating and comparing period-to-period results and projections in a more meaningful and consistent manner. Forward-Looking

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