Culp Announces Strategic Exchange Transfer to Nasdaq in Cost-Cutting Move

Textile maker Culp switches to Nasdaq, cutting annual listing fees from ~$500k to $159k, as part of a broader $6M cost-reduction plan amid declining sales.

In a significant strategic shift, textile manufacturer Culp, Inc. is preparing to end its three-decade-long listing on the New York Stock Exchange. The company has scheduled a move to the Nasdaq Capital Market, a decision driven by a clear objective to optimize expenses amid a challenging operating climate.

The official transition is set for early March. According to a recent announcement, the final trading day for Culp shares on the NYSE will be March 5, 2026. When markets open the following day on March 6, the stock will commence trading on Nasdaq.

Financial Rationale Behind the Move

A primary catalyst for the exchange transfer is a substantial reduction in listing fees. Company leadership, including CEO Iv Culp, framed the move as a logical step in ongoing integration and efficiency efforts. Listing on the Nasdaq carries an annual cost of up to $159,000, a stark contrast to the approximate $500,000 in yearly fees incurred at the NYSE. This change aligns the company more closely with industry peers also listed on the Nasdaq.

This initiative represents another phase in a comprehensive restructuring plan. In September 2025, the firm instituted a cost-reduction program targeting annual savings of $6 million. The organization has already undergone considerable streamlining, evidenced by a sharp decline in its workforce. Between April 2023 and April 2025, the number of employees was reduced from 1,333 to 760.

Broader Restructuring and Market Context

Further bolstering its financial position, Culp divested a Canadian production facility for approximately $6.2 million. This transaction not only provided liquidity for debt reduction but also eliminated ongoing monthly fixed costs that ran into the six-figure range.

Despite these aggressive measures, the market environment remains difficult. For the 2025 fiscal year, the company reported a 5% decline in revenue, which fell to $213.2 million. Its most recent quarterly report, for Q2, showed revenues of $53.2 million. A key question for investors is whether the rigorous cost-cutting and structural simplification can sufficiently offset the pressure from declining sales.

Currently, the company carries a market valuation of approximately $41.67 million. The departure from the NYSE after 30 years signifies a new chapter focused intensely on cost discipline. Starting March 6, Culp shares will trade on Nasdaq, where the company must demonstrate its resilience in an environment with significantly lower fixed operational costs.