Note 26 - Related Party Transactions

9 Months Ended

Mar. 24, 2013

Related Party Transactions Disclosure [Text Block]

26. Related Party Transactions

On March 22, 2013, the Company entered into a Stock Purchase Agreement with Dillon. Pursuant to the Stock Purchase Agreement, the Company repurchased 500 shares of the Company’s common stock from Dillon for an aggregate amount of $8,500.  The Company and Dillon negotiated the $17.00 per share price based on approximately a 10% discount to the closing price of the stock on March 20, 2013.  Mr. Mitchel Weinberger, a member of the Company’s Board, is Dillon’s president and chief operating officer. The Company’s Board approved this transaction in accordance with its related person transactions approval policy. Mr. Weinberger was not involved in any decisions by the Company’s Board, or any committee thereof, with respect to this stock repurchase transaction.

During the third quarter of fiscal year 2013, the Company repurchased 71 shares of its common stock through open market transactions.  Invemed Associates LLC provided brokerage services to the Company for the repurchase of these shares.  The Company paid a commission of $.02 per share to Invemed Associates LLC. Mr. Kenneth Langone, a member of the Company’s Board, is the founder and chairman of Invemed Associates LLC.

On November 19, 2012, the Company entered into a capital lease with Salem Leasing Corporation for certain transportation equipment.  The amount due under the fifteen year term of the lease is $1,234 and payments are made monthly.  The implicit annual interest rate under the lease is approximately 4.6%.  Mr. Langone is a director, stockholder and Chairman of the Board of Salem Leasing Corporation.

On August 30, 2012, a foreign subsidiary of the Company entered into an unsecured loan agreement with its unconsolidated affiliate U.N.F. Industries Ltd. (“UNF”) and borrowed $1,250.  The loan bears interest at 3% with interest payable semi-annually.  The loan does not amortize and has a maturity date of August 30, 2014 at which time the entire principal balance is due.

For a further discussion of the nature of certain related party relationships see “Footnote 27. Related Party Transactions” included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 24, 2012.

Related party receivables and payables consist of the following:

	March 24, 2013		June 24, 2012
Dillon Yarn Corporation	$	2	$	7
Cupron, Inc.		8		—
American Drawtech Company, Inc.		167		104
Total related party receivables (included within receivables, net)	$	177	$	111
Dillon Yarn Corporation	$	163	$	206
American Drawtech Company, Inc.		—		20
Cupron, Inc.		255		—
Salem Leasing Corporation		260		270
Total related party payables (included within accounts payable)	$	678	$	496

Related party transactions consist of the following:

		For the Three Months Ended
Affiliated Entity	Transaction Type	March 24, 2013		March 25, 2012
Dillon Yarn Corporation	Sales and Service Agreement	$	79	$	131
Dillon Yarn Corporation	Sales		1		15
Dillon Yarn Corporation	Yarn Purchases		694		462
American Drawtech Company, Inc.	Sales		449		391
American Drawtech Company, Inc.	Yarn Purchases		19		63
Salem Leasing Corporation	Transportation Equipment Costs		765		756
Cupron, Inc.	Sales		91		6

		For the Nine Months Ended
Affiliated Entity	Transaction Type	March 24, 2013		March 25, 2012
Dillon Yarn Corporation	Sales and Service Agreement	$	346	$	700
Dillon Yarn Corporation	Sales		7		118
Dillon Yarn Corporation	Yarn Purchases		1,963		1,711
American Drawtech Company, Inc.	Sales		683		2,436
American Drawtech Company, Inc.	Yarn Purchases		56		105
Salem Leasing Corporation	Transportation Equipment Costs		2,295		2,287
Cupron, Inc.	Sales		106		102