Alexander B. Jones from 22NW, LP to be Added to the Board and Nominated to Serve on Culp, Inc. Board of Directors at 2024 Annual Shareholders Meeting.

Rhea-AI Summary

Culp has entered a cooperation agreement with its major shareholder, 22NW. As part of this agreement, Alexander B. Jones from 22NW will join Culp's board and will be nominated for a position at the 2024 Annual Shareholders Meeting. Jones, who oversees investments at 22NW, is also an Independent Director at L.B. Foster Company. Both parties have expressed optimism about the collaboration, especially given Culp's ongoing restructuring plan. The full agreement will be filed with the SEC as a form 8-K.

Positive

• Culp's cooperation agreement with 22NW brings a significant shareholder into a collaborative role.
• Alexander B. Jones' appointment to the board adds expertise in industrials, materials, and consumer sectors.
• Positive remarks from both Culp's chairman and 22NW's portfolio manager suggest strong support for Culp's restructuring initiatives.

Negative

• The announcement lacks specific financial data or immediate business impacts, making it harder to assess short-term benefits.

HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (the Company) (NYSE: CULP) today announced that it has entered into a cooperation agreement with 22NW, LP, one of the Company’s largest shareholders.

Pursuant to the agreement, the Company will add Mr. Alexander B. Jones to the board, effectively immediately, and Mr. Jones will serve as a nominee to its slate of directors at the September 2024 Annual Shareholders Meeting. Mr. Jones is a Vice President and Sr. Research Analyst at 22NW where he oversees the firm’s investments in the industrials, materials, and consumer sectors. Mr. Jones is currently an Independent Director at the L.B Foster Company, (NASDAQ: FSTR).

Franklin Saxon, Culp, Inc. Chairman of the Board of Directors, commented on the agreement, “We are pleased to have reached this agreement with 22NW for Alex to join the board. Our interactions with Alex and 22NW have been constructive over the years, and as we execute our recently announced restructuring plan, we are pleased to have Alex’s perspectives and insights as a Board member.”

Aron R. English, 22NW’s Portfolio Manager and Founder, commented, “We appreciate the constructive dialogue we have had with Culp. We are encouraged by and supportive of the Company’s restructuring initiatives, and we look forward to Alex’s contributions to the board for the benefit of all shareholders.”

Alexander B. Jones, Vice President, and Sr. Research Analyst at 22NW, LP, commented, “I am honored to be joining the CULP Board. I look forward to working constructively with management and the Board on topics relevant for all shareholders, particularly on issues like investor communications and capital allocation.”

In the agreement, Culp, Inc. and 22NW have agreed to customary standstill, voting and other provisions. The complete agreement between Culp, Inc. and 22NW will be filed with the SEC as an exhibit to a form 8-K.

About Culp, Inc.

Culp, Inc. is one of the world’s largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture. The company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp’s manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, Canada, China, Haiti, Turkey, and Vietnam.

About 22NW, LP

22NW, LP is a Seattle-based investment firm that specializes in microcap investments that have a multiyear investment horizon.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617903227/en/

Investor Relations Contact

Ken Bowling, Executive Vice President, Chief Financial Officer, and Treasurer:

(336) 881-5630

krbowling@culp.com

Source: Culp, Inc.

FAQ

What recent agreement did Culp announce with 22NW?

Culp announced a cooperation agreement with 22NW, allowing Alexander B. Jones from 22NW to join its board.

Who is Alexander B. Jones?

Alexander B. Jones is a Vice President and Sr. Research Analyst at 22NW and an Independent Director at L.B. Foster Company.

When will Alexander B. Jones be nominated for Culp's board?

Alexander B. Jones will be nominated at Culp's 2024 Annual Shareholders Meeting.

What are the main sectors Alexander B. Jones oversees at 22NW?

Alexander B. Jones oversees investments in the industrials, materials, and consumer sectors at 22NW.

What is the significance of Culp's recent cooperation agreement with 22NW?

The agreement indicates constructive collaboration, particularly amidst Culp's restructuring efforts, and brings significant shareholder involvement to the board.