Restructuring Costs, Net

9 Months Ended

Mar. 29, 2026

Restructuring and Related Activities [Abstract]

15. Restructuring Costs, Net

On February 3, 2025, UNIFI announced the pending closure of its manufacturing facility in Madison, North Carolina, and a plan to transition the associated manufacturing operations to other production facilities in North and Central America. In the fourth quarter of fiscal 2025, UNIFI sold the Madison, North Carolina facility, as well as certain machinery and equipment located thereon, for a cash purchase price of $45,000 (the "Madison Sale"). The net proceeds of the Madison Sale were used to repay a portion of the principal balance of the term loan and revolving credit facility outstanding under the 2022 Credit Agreement.

As part of the Madison Sale, 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 Consolidated Financial Statements as of March 29, 2026.

Beginning in the prior year quarter ending March 30, 2025 through the second quarter of this fiscal year, UNIFI incurred transition costs related to the consolidation of Americas yarn manufacturing operations discussed above 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 Consolidated Statements of Operations.

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

A summary of the restructuring activities (benefits) consists of the following:


	For the Three Months Ended						For the Nine Months Ended
	March 29, 2026			March 30, 2025			March 29, 2026			March 30, 2025
Facility closure and equipment relocation costs	$	—		$	1,088		$	713		$	1,088
Employee separation costs		—			232			1,140			232
Restructuring costs, net		—			1,320			1,853			1,320

Beginning Liability		283			—			289			—
Restructuring costs, net		—			1,320			1,853			1,320
Gain on disposals of assets		—			—			125			—
Cash payments		(267	)		(1,094	)		(2,251	)		(1,094	)
Ending Liability		16			226			16			226

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"). During the nine months ended March 29, 2026, UNIFI incurred employee separation costs of $1,093 related to the Fiscal 2026 Profit Improvement Plan.