Note 27 - Related Party Transactions

12 Months Ended

Jun. 24, 2012

Related Party Transactions Disclosure [Text Block]

27. Related Party Transactions

Related party receivables and payables consist of the following:

	June 24, 2012		June 26, 2011
Dillon Yarn Corporation	$	7	$	6
American Drawtech Company, Inc.		104		506
Total related party receivables (included within receivables, net)	$	111	$	512
Dillon Yarn Corporation	$	206	$	276
American Drawtech Company, Inc.		20		11
Salem Leasing Corporation		270		280
Total related party payables (included within accounts payable)	$	496	$	567

Related party transactions consist of the following:

		For the Fiscal Years Ended
Affiliated Entity	Transaction Type	June 24, 2012		June 26, 2011		June 27, 2010
Dillon Yarn Corporation	Sales Service Agreement	$	845	$	1,300	$	1,500
Dillon Yarn Corporation	Sales		134		51		71
Dillon Yarn Corporation	Yarn Purchases		2,333		2,302		3,173
American Drawtech Company, Inc.	Sales		2,876		4,042		2,041
American Drawtech Company, Inc.	Yarn Purchases		147		129		53
Salem Leasing Corporation	Transportation Equipment Costs		3,096		3,400		2,975
Cupron, Inc.	Sales		116		26		—
Invemed Catalyst Fund L.P.	Stock Purchase		—		—		4,995

In fiscal year 2007, the Company purchased the polyester and nylon texturing operations of Dillon Yarn Corporation (“Dillon”).  Mr. Mitchel Weinberger, the President and Chief Operating Officer of Dillon, is a member of the Company’s Board.  In connection with the Dillon acquisition, the Company and Dillon entered into an agreement under which the Company agreed to pay Dillon for certain sales and services to be provided by Dillon's sales staff and executive management.  On December 19, 2011, the Company and Dillon entered into an amendment for the existing sales and service agreement.  The amendment provides for a one year term beginning in January 2012 and consideration of $106 paid quarterly.  In addition, the Company recorded sales to and commission income from Dillon and has purchased products from Dillon in the ordinary course of business.

Mr. Weinberger is a board member and the Executive Vice President of American Drawtech Company, Inc. (“ADC”). 

Mr. Kenneth G. Langone, a member of the Company’s Board, is a director, stockholder, and Chairman of the Board of Salem Holding Company.  The Company leases tractors and trailers from Salem Leasing Corporation, a wholly-owned subsidiary of Salem Holding Company.   In addition to the monthly minimum lease payments, the Company also incurs expenses for routine repair and maintenance and other expenses related to the leased tractors and trailers.  The leases do not contain renewal, purchase options or escalation clauses.

During fiscal year 2012, the Company had sales to Cupron, Inc. (“Cupron”).  Mr. William J. Armfield, IV is a member of the Company’s Board and holds an indirect minority equity interest in Cupron.

On November 25, 2009, the Company entered into a stock purchase agreement with Invemed Catalyst Fund L.P. (the “Fund”).  The Company agreed to purchase 628 shares at a purchase price of $7.95 (an approximate 10% discount to the closing price).  The transaction closed on November 30, 2009 at a total purchase price of $4,995.  Mr. Langone is the principal stockholder and CEO of Invemed Securities, Inc., which is a managing member of Invemed Catalyst Gen Par, LLC, and the general partner of the Fund.  Mr. William M. Sams, another member of the Company’s Board, is a limited partner of the Fund.  Neither Mr. Langone nor Mr. Sams were involved in any decisions by the Board with respect to the stock purchase agreement.