11:07 AM EDT, 08/23/2024 (MT Newswires) -- Purple Innovation ( PRPL ) shares were up more than 6% in recent trading Friday, a day after the company said it is streamlining its operations to achieve a positive operating cash flow.

The company said it will consolidate its mattress manufacturing operations into its facility in Georgia and shut down two production facilities in Utah.

The shutdown of the Utah production plants is anticipated to be completed in Q1 2025, and the consolidation into the Georgia site is projected to be finished by Dec. 31, according to the company.

Purple Innovation ( PRPL ), which also plans to reduce a number of corporate-level positions, said these measures are expected to be completed early next year and generate $15 million to $20 million in earnings before interest, taxes, depreciation, and amortization benefit on an annualized run-rate basis starting in 2025.

While it expects to incur restructuring costs of $35 million to $45 million starting Q3 up to Q2 of 2025, the company said the measures are not expected to impact full-year 2024 guidance targets.

Price: 1.22, Change: +0.07, Percent Change: +6.09