Restructuring Costs, Net

6 Months Ended

Dec. 28, 2025

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 December 28, 2025.

During the three and six months ended December 28, 2025, 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 Six Months Ended
	December 28, 2025			December 28, 2025
Facility closure and equipment relocation costs	$	(308	)	$	713
Employee separation costs		1,093			1,140
Restructuring costs, net		785			1,853

Beginning Liability		222			289
Restructuring costs, net		785			1,853
Gain on disposals of assets		318			125
Cash payments		(1,042	)		(1,984	)
Liability as of December 28, 2025		283			283

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 three-months ended December 28, 2025, UNIFI incurred employee separation costs of $1,093 related to the Fiscal 2026 Profit Improvement Plan.